Table of Contents
Key Points
- Anglo American sells its steelmaking coal business for up to $4.9 billion, including assets sold to Peabody Energy and Jellinbah mine stake.
- CEO Duncan Wanblad highlights the sale’s alignment with the strategy to focus on growth sectors like copper, iron ore, and crop nutrients.
- The sale is part of a broader portfolio transformation, including the planned demerger of Anglo American Platinum and potential separation of De Beers.
Anglo American Plc, the global mining giant led by South African CEO Duncan Wanblad, has agreed to sell its entire steelmaking coal business for up to $4.9 billion.
The sale includes a previously announced deal to sell its stake in the Jellinbah coal mine for $1.1 billion, with the remaining assets sold to Peabody Energy for up to $3.775 billion in cash.
Deal details and strategic goals
The transaction is a part of Anglo American’s broader strategy to concentrate on high-growth commodities like copper, premium iron ore, and crop nutrients.
CEO Duncan Wanblad emphasized that the deal would boost shareholder returns and enhance the company’s position in key markets.
Under the agreement with Peabody, Peabody will make an upfront cash payment of $2.05 billion, with additional deferred payments potentially bringing the total to $3.775 billion.
The deal also includes an earnout of up to $550 million and a $450 million contingent payment tied to the reopening of the Grosvenor mine in Queensland, Australia.
Peabody Energy, a leading global coal company, has already placed a $75 million deposit. The transaction is expected to close by the third quarter of 2025, pending regulatory approvals and pre-emption arrangements.
Anglo American's focus on future growth
“This sale is an important step in executing the strategy we set out in May,” said Wanblad. “By focusing on high-quality assets with outstanding growth potential, we are positioning ourselves for long-term success.”
The sale is part of a broader portfolio transformation for Anglo American. This includes the planned demerger of Anglo American Platinum by mid-2025, the ongoing sale of its nickel business, and the potential separation of De Beers.
The company is also targeting at least $800 million in recurring annual cost benefits by the end of 2025.
With the latest deal, Peabody Energy is set to take on a significant portfolio of steelmaking coal assets, including the Grosvenor mine and four other mines in Queensland.
This acquisition underscores Peabody’s confidence in the future of premium coking coal and its ability to optimize these assets for long-term success.
Anglo American’s bold sustainability strategy
Under the leadership of CEO Wanblad, Anglo American has worked to optimize its portfolio and strengthen its sustainability initiatives.
Since taking the helm in April 2022, Wanblad has prioritized creating a more agile, cost-efficient operation, with a clear focus on generating value for shareholders. This strategic approach is evident in the company’s recent $195 million sale of two royalty stream assets.
As Anglo American continues to streamline its portfolio by shedding non-core assets, it is positioning itself for long-term growth in critical sectors like copper, iron ore, and agriculture.
This strategy aligns with the growing global demand for the resources essential to drive energy transition, infrastructure development, and agricultural expansion.
