Australian-listed coal miner Yancoal Australia Ltd. (ASX:YAL) is understood to have tapped investment bank RBC in its quest to buy Anglo American plc (LSE:AAL)'s suite of Queensland-based metallurgical coal mines that may sell for up to $5 billion (AUD 7.7 billion). Yancoal, which is 62% owned by the China state-owned Yankuang Energy, is expected to be a strong contender for the assets owned by the London-listed miner, which was this year targeted for a buyout by BHP, while the Swiss commodity trader Glencore is expected to run hard at the opportunity. Glencore will come to the competition self-advised, while Yancoal and Glencore will likely face scrutiny from the Foreign Investment Review Board.

Stanmore Coal is thought to be in the mix, and Indonesian backers are likely to be there to support its bid or play separately, such as BUMA Energy and Stanmore's backer Golden Energy, but so far Glencore is considered the group to beat. The process starts this month, with Anglo American opting to dive straight in with the provision of information memorandums in a process run by Morgan Stanley and Goldman Sachs. Suitors have already signed up to enter a data room.

On offer are Anglo American's Capcoal and Dawson assets and its most attractive mines, Moranbah North and Grosvenor. Also in the mix are its Aquila project, an interest in Jellinbah and the potential Moranbah South project.