Anglo American (AAL, Financial) has agreed to sell its 33.3% partnership interest in the Australian coal mining joint venture Jellinbah Group to Zashvin Pty Ltd. for A$1.6 billion ($1.1 billion). This move aligns with the company's broader strategy to focus on copper, iron ore, and the Woodsmith fertilizer project in the UK, following its May restructuring plan and rejection of a $49 billion takeover offer from BHP (BHP, Financial).
This transaction includes Jellinbah's 70% interest in two metallurgical coal projects in Queensland, which are expected to be completed in Q2 2025. Anglo-American stated that negotiations are still underway with six potential buyers for its remaining Australian coal assets, estimated to be worth between $4 billion and $5 billion. Notable interested parties include Peabody, Yancoal, and Glencore.
Anglo's restructuring plan also involves exiting the diamond business, including its decision to sell its 85% stake in De Beers, although this sale may be postponed in the event of a sector slump. In September, the company also sold a 5% stake in Anglo American Platinum, reducing its interest in the company to 73.7%.
The Jellinbah sale aims to reassure investors of Anglo's commitment to asset realignment. However, it has faced challenges in divesting larger coal operations, such as the Grosvenor mine, which resumed output in early 2022 following an explosion and extended shutdown.
In a statement, CEO Duncan Wanblad noted that discussions to finalize the divestment of its steelmaking coal business are well advanced. In response to rising demand from the green energy transition, he also emphasized Anglo's strategy to achieve over one million tonnes of annual copper production from its Chilean and Peruvian assets by the early 2030s.
