Anglo American has announced the sale of its Australian steelmaking coal portfolio to UK-based miner Dhilmar for up to $3.88 billion. The London-listed mining giant is divesting its operations in Queensland’s Bowen Basin, a premier global hub for metallurgical coal. This decisive exit from the sector is designed to streamline the corporation and slash debt as it prepares for a high-profile merger with Canada’s Teck Resources, a combination that will create a formidable, copper-focused industry heavyweight.
The financial structure of the divestment includes a guaranteed $2.3 billion in upfront cash, with an additional $1.58 billion contingent upon future coal price performance. Chief Executive Officer Duncan Wanblad confirmed that the transaction marks the final chapter of the company’s departure from steelmaking coal. Despite the definitive strategic pivot, Anglo American shares dipped 1.7% following the announcement, mirroring broader market anxieties and sector-wide weakness driven by persistent inflation fears.
“Our agreement for Dhilmar to acquire our steelmaking coal business in Australia is testament to the high quality of these assets and our people. Dhilmar’s leadership brings considerable experience of operating major mining assets, including in steelmaking coal, in Southeast Asia and Canada. We will work together with the Dhilmar team and with our workforce, local communities, government, customers, and partners to ensure a successful transition.(…) This agreement represents another major step in the simplification of our portfolio ahead of completing our merger with Teck. 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.” Duncan Wanblad, CEO of Anglo American, said.
This successful agreement comes after a turbulent period for Anglo American’s Australian coking coal assets. Last year, a proposed $3.78 billion acquisition by Peabody Energy collapsed when negotiations broke down over a price reduction following a significant underground mine fire. Alongside Monday’s sales announcement, Anglo American confirmed it is actively pursuing arbitration against Peabody regarding that failed transaction.
The buyer, Dhilmar, is a privately held mining group looking to rapidly diversify its international footprint. The company made headlines last year by acquiring the Eleonore gold mine in Canada from Newmont Corporation. Dhilmar is spearheaded by Chief Executive Officer Alexander Ramlie, a seasoned industry executive with deep roots in the Indonesian mining sector, including past leadership roles at the prominent Indonesian gold and copper producer PT Amman Mineral Internasional Tbk.
