Staff Writer
Anglo American has agreed to sell its Australian steelmaking coal business to Dhilmar Limited in a deal valued at up to US$3.875 billion as the mining group continues restructuring its global portfolio.
The transaction includes Anglo American’s steelmaking coal portfolio and consists of an upfront cash payment of US$2.3 billion when the deal is completed, alongside a price-linked earnout of up to US$1.575 billion.
The company said proceeds from the sale will be used to reduce net debt.
Anglo American chief executive officer Duncan Wanblad said the agreement reflects the value of the assets and the strength of the workforce.
He said Dhilmar has operational experience in the steelmaking and coal sector across Southeast Asia and Canada.
Wanblad said the sale forms part of Anglo American’s broader strategy to simplify its portfolio ahead of its planned merger with Teck Resources Limited.
He added that the transaction marks another step in the company’s exit from the steelmaking coal sector, bringing total expected cash proceeds to as much as US$4.9 billion, including the earlier sale of its Jellinbah interest.
The deal is still subject to regulatory and competition approvals, pre-emption arrangements and other customary conditions. Completion is expected during the first quarter of 2027.
At the same time, Anglo American said it continues arbitration proceedings with Peabody over a separate November 2024 agreement linked to the steelmaking coal portfolio.
The company said it does not believe the incident at Moranbah North cited by Peabody justifies termination of the agreement under a material adverse change clause.
The Steelmaking Coal Portfolio includes interests in several Australian joint ventures, including Moranbah North, Grosvenor, Capcoal, Roper Creek, Dawson and Moranbah South.
Anglo American is also pursuing plans to divest De Beers, which remains a major player in Namibia’s diamond industry through partnerships with the Namibian government.
These include Debmarine Namibia, Namdeb Holdings and the Namibian Diamond Trading Company.
