Anglo to Sell 33% Stake in Australian Coal Assets for $1.1 Billion

Foreks - Anglo American (JO:AGLJ) has agreed to sell its 33.3% stake in the joint venture that owns 70% of the coal mines used for steel production at Jellinbah East and Lake Vermont in Australia for AUD 1.6 billion (USD 1.1 billion). The deal marks the beginning of Anglo's broader plan to restructure its business by divesting unwanted assets after fending off a USD 49 billion takeover bid from larger rival BHP Group in May of this year.

In an announcement made yesterday, Anglo stated that it will sell one-third of the Queensland-based mines’ operator, Jellinbah Group, to Australian electricity generation plant operator Zashvin Ltd, which already holds a one-third stake in the mines. CEO Duncan Wanblad mentioned that Anglo is also progressing towards the sale of other coking coal mines in Australia and is on track to finalize an agreement in the coming months.

The company is racing to divest its platinum mines in South Africa while also selling coking coal mines in Australia and nickel assets in Brazil. Anglo is also evaluating whether to sell its De Beers diamond unit or list it separately while focusing on its copper, iron ore, and fertilizer business.

The company’s world-class copper assets in Latin America have become targets for larger competitors aiming for greater exposure to this important green energy transition metal. Anglo has laid out an ambitious plan to increase copper production in its Chile and Peru mines to approximately 1 million tons by 2030.