Anglo American has agreed to sell its portfolio of Australian steelmaking coal mines to Dhilmar for cash consideration of up to US$3.875 billion. The transaction follows Peabody’s termination of purchase agreements for these assets last year due to a material adverse change.
“This agreement represents another major step in the simplification of our portfolio ahead of completing our merger with Teck,” said Duncan Wanblad, CEO of Anglo American. “Through this transaction, we will complete our exit from steelmaking coal, delivering aggregate cash proceeds of up to US$4.9 billion, given the prior completion of the sale of our interest in the Jellinbah mine for approximately US$1 billion.”
The agreed cash consideration for the Australian assets comprises an upfront cash consideration of $2.3 billion payable by Dhilmar at completion and a price-linked earnout of up to $1.575 billion. Anglo American said it will use the cash proceeds to reduce net debt.
Anglo American’s steelmaking coal portfolio consists primarily of an 88.0% interest in the Moranbah North and Grosvenor joint ventures; a 70% interest in the Capcoal joint venture; an 86.36% interest in the Roper Creek joint venture; a 51.0% interest in the Dawson joint venture, Dawson South joint venture, Dawson South Exploration joint venture and the Theodore South joint venture; and a 50.0% interest in the Moranbah South joint venture.
The transaction is subject to several conditions, including customary competition and regulatory clearances, and pre-emption arrangements. It is expected to close by the first quarter of 2027.
Source: Anglo American