Anglo American takes next step toward coal divestment

Anglo American has reportedly hired Goldman Sachs, Morgan Stanley and Centerview Partners – all previously brokers to the company – for the sale of its steelmaking coal assets, which analysts value at as much as $5 billion, reported Reuters.

In May, the miner’s CEO Duncan Wanblad said that it would soon sell off its five operating coal mines, development projects and joint ventures in Australia as it turns its focus on expanding copper output. However, it is still battling a fire ignited at its Grosvenor mine in Queensland on June 29, with assessment of the damage and re-opening likely to take several months.

Anglo had previously said the restructuring, which also includes the demerger of its South African platinum assets, the divestment or closure of its nickel assets, and the demerger or sale of diamond unit De Beers, would be well advanced by the end of 2025.

The Grosvenor mine produced 2.797 million tons of metallurgical coal in 2023, making up 17% of the miner’s coal output. In 2024, Anglo American expected the mine to produce 3.5 million tons. 

Source: Reuters

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