Anglo American agrees to sell Australian steelmaking coal mines
Anglo American has agreed to sell its Australian steelmaking coal mines in a deal worth up to $3.88bn (£2.9bn).
The FTSE 100 mining giant said it will sell the operations to fellow UK-based miner Dhilmar.
It comes amid efforts from Anglo American to simplify its operations ahead of its $50bn (£37.5bn) merger with Canada’s Teck Resources.
Dhilmar will pay $2.3bn (£1.72bn) in an upfront cash payment when the deal is completed, with a further $1.58bn (£1.18bn) of payments depending on performance.
The deal is subject to regulatory approval and is expected to complete by the first quarter of 2027.
Duncan Wanblad, chief executive of Anglo American, said: “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.”
The sale is the latest disposal by Anglo American amid efforts to streamline ahead of its mega-merger.
Last year, the group completed its $1.6bn (£1.2bn) sale of its stake in Jellinbah Group.