Anglo American has agreed to sell its steelmaking coal assets in Australia to Dhilmar Limited for up to $3.875 billion in cash, exiting the steelmaking coal business as the mining giant continues its restructuring that began two years ago.
Anglo American said in May 2024 that it plans to divest or demerge its diamond, platinum, steelmaking coal, and nickel businesses as it seeks to radically simplify its portfolio to focus on its copper, premium iron ore, and crop nutrients assets.
Today, Anglo American announced that it had agreed to sell its portfolio of steelmaking coal mines in Australia to Dhilmar Limited 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 plans to use the cash proceeds to reduce its net debt.
Set OilPrice.com as a preferred source in Google .
The Anglo-Dhilmar deal for the Australian steelmaking coal assets is subject to a number of conditions, including customary competition and regulatory clearances, and pre-emption arrangements, with completion expected by the first quarter of 2027.
“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,” Anglo American CEO Duncan Wanblad said.
“This agreement represents another major step in the simplification of our portfolio ahead of completing our merger with Teck.”
Anglo American, which was approached by BHP Group for a potential merger last year, announced in September 2025 that Teck Resources and Anglo American had agreed to combine via a merger of equals to create a copper and other critical minerals giant with a market capitalization of over $53 billion.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
- India’s Wholesale Inflation Hits 3.5-Year High as Fuel Costs Surge 25%
- China Still Cautious on Fuel Shipments Despite Eased Export Rules
- Chinese Refiners Slash Crude Runs to Lowest Level Since 2022
