Anglo American plans $3.8 billion sale of Australian coal mines 

Anglo American, a leading global mining company, said Monday it will sell its Australian steelmaking coal mines to UK-based miner Dhilmar for as much as $3.88 billion, deepening a broader overhaul aimed at cutting debt and sharpening its focus on copper ahead of a planned merger with Teck Resources. 

The London-listed miner is offloading the Queensland Bowen Basin assets, located in one of the world’s biggest steelmaking coal regions. Anglo said the transaction includes $2.3 billion in upfront cash and as much as $1.58 billion tied to future coal prices. 

“Through this transaction, we will complete our exit from steelmaking coal,” Chief Executive Duncan Wanblad said in a statement. 

The proceeds are expected to help reduce debt as Anglo reshapes its portfolio around copper and other core businesses.

Peabody arbitration continues 

The sale follows a failed attempt last year to sell the same assets to Peabody Energy for $3.78 billion. Peabody walked away from the deal after both sides were unable to agree on revised terms following a mine fire at one of the operations. 

Anglo said it is still pursuing arbitration linked to the collapsed transaction. 

Anglo American restructures portfolio

Founded in 1917, Anglo American has operations across Africa, the Americas and Australia, producing copper, iron ore, platinum group metals and crop nutrients. In recent years, the company has moved to simplify its business as investor pressure grows for miners to focus on higher-growth commodities tied to the energy transition. 

Wanblad, who became CEO in 2022 after more than three decades in the mining industry, has led much of that restructuring effort. Before taking the top job, he ran Anglo’s base metals division and also chaired the Anglo American Foundation. He currently serves as chairman of De Beers.