en.Wedoany.com Reported - Anglo American has announced that it has reached an agreement to sell its portfolio of coking coal operations in Australia to private mining company Dhilmar Limited for a total consideration of up to $3.875 billion.
The transaction includes $2.3 billion in cash payable at closing, along with a coal price-linked contingent payment mechanism that could yield up to an additional $1.575 billion over the five years following completion. Anglo American stated that the proceeds will primarily be used to reduce debt levels.
This sale is part of Anglo American's portfolio restructuring. Chief Executive Officer Duncan Wanblad said the agreement represents the latest step in the company's strategy to simplify its asset base. He noted that the quality of these assets and the caliber of their workforce attracted a buyer with extensive experience in large-scale mining operations. The company will work with Dhilmar, employees, communities, governments, and customers to facilitate a smooth transition.
Anglo American indicated that this sale will complete its exit from the coking coal business. This follows the earlier sale of its interest in the Jellinbah mine, which generated approximately $1 billion. As a result, Anglo American expects total proceeds from asset divestitures related to its coking coal operations could reach up to $4.9 billion.
The portfolio being sold includes interests in several metallurgical coal operations in Queensland, Australia, specifically an 88% interest in the Moranbah North and Grosvenor operations, a 70% interest in Capcoal, an 86.36% interest in Roper Creek, and interests in integrated projects including Dawson, Dawson South, Dawson South Exploration, Theodore South, and Moranbah South. These mines are located in one of the world's primary metallurgical coal producing regions, a key raw material for steel manufacturing.
The transaction remains subject to customary conditions, including regulatory approvals, competition clearances, and pre-emptive rights mechanisms related to certain assets involved. Anglo American expects to complete all necessary approval processes by the first quarter of 2027.
A portion of the transaction value is linked to a contingent payment mechanism based on future international metallurgical coal and thermal coal prices. These payments will be calculated quarterly over the five years following completion and are tied to revenue above a specific reference price agreed upon by both parties. The total payments under this mechanism could reach up to $1.575 billion, with no cap on individual payment periods.
As the buyer, Dhilmar is a privately held mining company registered in the UK with investments across multiple mining jurisdictions. In 2025, the company acquired the Éléonore gold mine in Canada from Newmont Corporation and stated that its strategic focus is on acquiring and operating long-life assets. This acquisition of Anglo American's coking coal business is one of the largest recent transactions in the sector, solidifying the company's international position in the raw materials segment required by the steel industry.
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