By Adam Whittaker
Anglo American said it agreed to sell steelmaking coal assets in Australia to mining company Dhilmar for up to $3.875 billion in cash, pushing to simplify its portfolio ahead of a merger with Teck Resources.
The deal with privately held Dhilmar comprises a $2.3 billion upfront cash payment, and up to $1.575 billion in price-related additional fees. London-listed Anglo said it will use the cash proceeds to pay down net debt.
The assets are located in Australia and include the Moranbah North underground mine in Queensland, which was shut down after a fire in March last year.
Anglo's steelmaking coal assets were earmarked for sale as part of a restructuring effort it started after it fended off a takeover bid from rival BHP Group in 2024. A previous agreement with coal producer Peabody Energy to sell the assets in a $3.78 billion deal fell apart after the fire at Moranbah North. Anglo has started arbitration proceedings against Peabody after the latter pulled out of the deal citing a material adverse change. Anglo said Monday arbitration efforts will continue.
Monday's sale--expected to close by the first quarter of 2027--will complete Anglo's exit from steelmaking coal. It previously sold its interest in the Jellinbah mine for around $1 billion.
Anglo and Teck Resources agreed last year to a merger that would create one of the world's largest copper producers.
Anglo American's shares were down 2.2% in opening trade Monday amid a broader selloff across the sector amid inflation and rate-hike fears.
Write to Adam Whittaker at adam.whittaker@wsj.com
(END) Dow Jones Newswires
05-18-26 0355ET
