Anglo American sells Australian steelmaking coal mines to Dhilmar
Anglo American PLC on Monday struck a deal to sell its portfolio of steelmaking coal mines in Australia to Dhilmar Ltd for up to $3.88 billion in cash.
The London-based mining house said Dhilmar will pay the FTSE 100-listing $2.3 billion upfront, and the deal has a price-linked earnout of up to $1.58 billion.
Dhilmar is a privately-held mining company whose assets include the Eleonore gold mine in Canada, acquired from Newmont last year.
Anglo American Chief Executive Officer Duncan Wanblad said: ‘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.’
Anglo American said it will use the cash proceeds from the deal, which is expected to complete by the first quarter of 2027, to reduce net debt.
Anglo American’s steelmaking coal portfolio consists primarily of an 88% interest in the Moranbah North and Grosvenor joint ventures; a 70% interest in the Capcoal joint venture; an 86% interest in the Roper Creek joint venture; a 51% interest in the Dawson joint venture, Dawson South joint venture, Dawson South Exploration joint venture and the Theodore South joint venture; and a 50% interest in the Moranbah South joint venture.
In addition, Anglo American said it continues to pursue the arbitration with Peabody Energy Corp in relation to its November 2024 agreement to acquire the Steelmaking Coal Portfolio. Anglo American remains confident that the incident at Moranbah North relied upon by Peabody in support of its purported termination of its agreement did not constitute a material adverse change.
The Moranbah North mine in Queensland was closed following an underground fire in March 2025.
Further, Anglo American noted a Chile tribunal which appears to overturn a 2021 environmental authorisation at the Collahuasi copper mine. Anglo owns 44% of the asset.
Glencore, which also owns 44% in the project, also noted the verdict, from the Second Environmental Tribunal in Chile.
The duo said the ruling is ‘limited to two specific aspects relating to analysis on the effects on a local community and on the marine environment’. Neither expect ‘any immediate impact on production’.
‘Collahuasi has stated that it will continue to work in coordination with the relevant authorities and stakeholders, acting responsibly and in accordance with the legal framework, in order to determine the appropriate next steps,’ the miners add. Mitsui & Co owns the remaining 12% of the asset.
Shares in Anglo American were down 1.9% to 3,760.00 pence in London on Monday and Glencore was down 1.3% at 567.10p. The wider FTSE 100 was marginally higher.
In Johannesburg, Anglo American shares were 1.0% lower at R 839.81, while Glencore was down 0.9% at R 126.40.
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