The Chief Executive Officer of Anglo American's Metallurgical Coal business, Mr Seamus French, today announced the company had commenced a divestment process for its Callide thermal coal mine near Biloela in Central Queensland.

Mr French said Anglo American's Metallurgical Coal business unit's strategy was focused on growing its metallurgical coal business.

"Callide mine is a thermal coal operation primarily supplying domestic power stations in Biloela and Gladstone," Mr French said.

"The Callide mine does not align with our growth strategy and the divestment process will lead to the sale of the operation as a going concern.

"Callide mine is a low cost coal producer with a significant resource base of more than one billion tonnes, a stable and well run operation in an established mining area and has a strong future underpinned by long term coal supply contracts.

"Anglo American sees an exciting opportunity for investors to expand the Callide business," Mr French said.

"The process will be undertaken with care and respect for our employees and all other stakeholders with our priority during this period being the safety of our employees and stability of the operation," Mr French said.

"Anglo American will work closely with Government, its customers, suppliers and the local community to ensure they are consulted throughout this process," Mr French said.