Anglo American announces that it has agreed to sell its portfolio of steelmaking coal mines in
Australia to Dhilmar Ltd for a cash consideration of up to US$3.875 billion. The agreed cash consideration of up to US$3.875 billion comprises an upfront cash consideration of US$2.3 billion payable by Dhilmar at completion and a price-linked earnout of up to US$1.575 billion. Anglo American will use the cash proceeds to reduce net debt.
Duncan Wanblad, CEO 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.”
He added: “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 transaction is subject to a number of conditions, including customary competition and regulatory clearances, and pre-emption arrangements. The upfront cash consideration is subject to normal completion adjustments and completion is expected by the first quarter of 2027.
Dhilmar’s main existing mining asset is the Éléonore gold mine in Quebec, which it acquired from Newmont for US$795 million. Dhilmar is a privately owned UK company led by Alexander Ramlie, an Indonesian mining executive who also sits on the AMMAN Mineral Board of Commissioners – AMMAN operates the Batu Hijau copper-gold mine in West Sumbawa.
Anglo American’s Steelmaking Coal Portfolio consists primarily of an 88.0% interest 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 51.0% interest in the Dawson joint venture, Dawson South joint venture, Dawson South Exploration joint venture and the Theodore South joint venture; and a 50.0% interest in the Moranbah South joint venture.
In parallel with the transaction, Anglo American continues to pursue the arbitration with
Peabody in relation to its November 2024 agreement to acquire the Steelmaking Coal Portfolio.
Anglo American says it remains confident that the incident at Moranbah North relied upon by Peabody
in support of its purported termination of its agreement did not constitute a Material Adverse
Change.
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