Goldman Sachs in talks to sell its coal mines
Goldman Sachs in talks to sell its coal mines
Published: May 4, 2015 12:01 a.m. ET
By Ianthe Jeanne Dugan
Goldman Sachs Group Inc. GS, +0.57% got a disconcerting update a year after buying its second coal mine in Colombia: “Certain operational issues have arisen,” commodities executives reported.
That was putting it mildly. Local women and children had formed a human blockade to protest labor issues, shutting down production. Coal prices had dropped 20% in three years, and another 6% decline could permanently impair the value of Goldman’s investment, the executives told directors in late 2013.
After that, the bad news kept coming. Coal prices tumbled by more than 40%. An environmental law shut down production for most of last year.
It now appears that Goldman has had enough. The firm is in talks to sell the coal mines at a loss, according to people familiar with the negotiations. Any deal, coming after Goldman’s prior sales of power plants and an aluminum-storage business, would mark the end of the firm’s rocky sideline as a producer of raw materials.
More:
http://www.marketwatch.com/story/goldman-sachs-in-talks-to-sell-its-coal-mines-2015-05-04
