Anglo American has officially sold off its interest in the Jellinbah steelmaking coal operation, and its new owner is confident in its future significance.
Anglo held a 33.3 per cent stake in Jellinbah as part of a 70 per cent joint interest venture with Queensland investment management firm, Zashvin.
In November 2024, Anglo announced its intention to sell its minority Jellinbah stake to Zashvin, with $228 million quickly put on the table from the firm to lock down the deal.
Now, the deal is done, marking the first step in a major steelmaking coal divesture program for Anglo.
“We have moved at pace to simplify Anglo American to create an exciting and differentiated investment proposition focused on our world-class copper, premium iron ore and crop nutrients businesses,” Anglo chief executive Duncan Wanblad said.
“This more cash generative and higher margin portfolio will offer greater through-the-cycle resilience, with the benefit of significant high quality and well sequenced growth options across each product vertical, including a clear path to increase annual copper production to more than one million tonnes over the next decade.”
Zashvin resource development divisional manager James Xu welcomed the closure of the deal, which has come a few months earlier than originally expected.
“Jellinbah’s success since 1988 has been driven by the partnerships we have forged both locally and overseas,” he said.
“We pay tribute to Anglo American’s significant role in this journey and its dedication to making this historic transaction smooth and efficient.
“As a proudly Queensland family-owned company, our increased investment reflects our confidence in Queensland’s coal industry and our workforce, and our commitment to continue to work with central Queenslanders.”
With Jellinbah officially off the Anglo books, the miner is looking to the sale of the rest of its Australian steelmaking coal assets to Peabody Energy, which is expected to transpire by the end of the year.
Peabody will pay Anglo $5.8 billion for the assets, which include:
- a 51 per cent interest in the Dawson Complex
- a 50 per cent interest in the Moranbah South joint venture
- a 70 per cent interest in the Capcoal joint venture
- an 86.36 per cent interest in the Roper Creek joint venture
- an 88 per cent interest in the Moranbah North joint venture.
The deal also includes a contingent cash consideration of $US450 million ($690.7 million) linked to the reopening of the Grosvenor mine, which has remained closed after a fire blazed in the underground mine for over a month in 2024.
US-based Peabody has already found a buyer for the Dawson Complex in Delta Dunia Group subsidiary PT Bukit Makmur International (BUMA International).
BUMA will pay Peabody $455 million for the Bowen Basin coal mine, touted to be one of Australia’s largest.
When the sale was announced in November 2024, Wanblad said would be an important step towards creating a world class copper, premium iron ore and crop nutrients business.
“We are absolutely focused on delivering that strategy and unlocking the associated value as we streamline our cost structures and create a much simpler, more resilient and more agile business that will enable full market value recognition,” he said at the time.
