Anglo American has announced an agreement to sell its steelmaking coal business to Peabody Energy, a U.S.-based coal company, for a deal worth up to $3.78 billion. The transaction includes an upfront cash payment of $2.05 billion, a deferred payment of $725 million, and potential additional payments of $550 million if coal prices reach certain levels. An extra $450 million could be received if the Grosvenor mine reopens.
The assets being sold encompass five coal mines in Queensland, Australia, which collectively produced 16 million tons of coking coal last year. Grosvenor, the largest of these mines, is included in the sale. Previously, Anglo American sold stakes in another Australian coal mine for $1.05 billion.
CEO Duncan Wanblad highlighted that the sale of the steelmaking coal business is a significant step in executing the company's strategy to focus on world-class copper, premium iron ore, and crop nutrient businesses. This move aligns with Anglo American's largest restructuring plan in its 107-year history, announced in May, which aims to pivot towards a future-focused investment portfolio supporting the global green energy transition.
As part of this restructuring, Anglo American plans to separate its platinum company, Anglo American Platinum, and divest its diamond division, De Beers, in addition to selling its coking coal assets. The company remains committed to copper, iron, and crop nutrients as its core businesses.
