Anglo American to Sell Australian Coal Portfolio for $3.9 Billion
Anglo American (AAL.L, AGL.JO) is completing its exit from the steelmaking coal business by selling its Australian coal mine portfolio to UK-registered mining company Dhilmar in a deal worth up to $3.88 billion, as part of a broader strategy to streamline assets ahead of its planned merger with Teck Resources.Under the deal announced Monday, the mining giant will receive an upfront payment of $2.3 billion upon completion and a price-linked earnout of up to $1.58 billion. The company will use the proceeds to reduce net debt.The portfolio mainly includes an 88% stake in the Moranbah North and Grosvenor joint ventures, a 70% interest in the Capcoal joint venture, an 86.36% interest in the Roper Creek joint venture, a 51% stake in the Dawson joint venture, and a 50% interest in the Moranbah South joint venture.Subject to regulatory approvals and pre-emption arrangements, the deal is expected to close in the first quarter of 2027. The upfront cash consideration is subject to normal completion adjustments.Anglo American and Teck announced their planned merger of equals in September 2025, aiming to create Anglo Teck, a Canada-headquartered critical minerals giant focused primarily on copper production. The companies had said the transaction could take 12 to 18 months to complete, with Anglo American shareholders expected to own 62.4% of the combined entity and Teck investors holding the remaining 37.6%."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 company said.Anglo American added that it continues to pursue the arbitration with US-based Peabody Energy, which previously agreed to acquire the Australian steelmaking coal portfolio before pulling out of the deal in August 2025 over pricing disagreements.Shares of the company were down more than 1% in early morning trading in London.
