British multinational miner Anglo American has agreed to sell its Australian steelmaking coal portfolio to Dhilmar Ltd. for a cash consideration of up to US$3.875 billion (A$5.8 billion).
The deal comprises an upfront cash payment of US$2.3 billion upon completion, alongside a price-linked earnout mechanism structured to deliver up to an additional US$1.575 billion.
Anglo American confirmed the cash proceeds will be prioritised towards reducing its net debt ahead of its merger with Canadian company Teck Resources.
The portfolio on the block includes majority stakes in several premier Queensland operations, notably an 88 per cent interest in the Moranbah North and Grosvenor joint ventures, a 70 per cent stake in Capcoal, and a 51 per cent share in the Dawson joint ventures.
“Our agreement for Dhilmar to acquire our steelmaking coal business in Australia is testament to the high quality of these assets and our people,” said Anglo American CEO Duncan Wanblad.
“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.”
The transaction remains subject to customary competition and regulatory clearances, alongside existing pre-emption arrangements, with completion targeted for the first quarter of 2027.
In parallel to the Dhilmar deal, Anglo American is actively pursuing arbitration against Peabody regarding a failed November 2024 deal for the same portfolio.
Anglo American stated it remains highly confident that an operational incident at Moranbah North, which Peabody cited to terminate the prior contract, did not legally constitute a Material Adverse Change.
