Anglo American has found a new buyer for its coal assets
British mining company Anglo American is selling its Australian coking coal business to private mining group Dhilmar Limited for $3.88 billion. This is reported by SteelOrbis.
Thus, the company has taken another step towards portfolio restructuring ahead of the planned merger with Teck Resources.,
The deal, which will mark Anglo American's complete exit from the metallurgical coal segment, provides for an upfront payment of $2.3 billion upon completion and an additional payment related to the price of coking coal in the amount of up to $1.57 billion. The funds received will be used to reduce the company's net debt.
The transaction is expected to be completed by the first quarter of 2027. It is subject to the usual antimonopoly and regulatory approvals, as well as agreements on the right of priority purchase.
Together with the previously completed sale of a stake in Jellinbah last year for about $1 billion, this deal will increase Anglo American's total cash receipts from exiting the coking coal segment to $4.9 billion.
The previous buyer, Peabody, rejected a deal on the same asset portfolio in August last year, citing the incident at the Moranbah North mine as the reason for this. Anglo American has stated that it will continue arbitration proceedings with this company.