Anglo American has agreed to sell its portfolio of steelmaking coal mines in Australia to Dhilmar Limited for a cash consideration of up to $3.875 billion.
The deal comprises an upfront payment of $2.3 billion at completion and a price-linked earnout of up to $1.575 billion.
Proceeds will be used to reduce net debt.
The group said in February that its net debt was $8.6 billion in 2025.
The transaction marks another major step in Anglo American's portfolio simplification ahead of its planned merger with Teck, completing its exit from steelmaking coal. Combined with the prior sale of its interest in the Jellinbah mine for approximately $1 billion, aggregate cash proceeds from the coal exit will reach up to $4.9 billion.
“Our agreement for Dhilmar to acquire our steelmaking coal business in Australia is testament to the high quality of these assets and our people,” said group chief executive Duncan Wanblad.
“Dhilmar's leadership brings considerable experience of operating major mining assets, including in steelmaking coal, in Southeast Asia and Canada.”
The sale includes majority interests in the Moranbah North, Grosvenor, Capcoal, Dawson, and other joint ventures.
Completion is subject to regulatory clearances and pre-emption rights, expected by the first quarter of 2027.
Anglo American said it continues to pursue arbitration with Peabody over its November 2024 agreement to acquire the same portfolio, maintaining that a mine incident at Moranbah North did not constitute a material adverse change.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
