Anglo American Sells Australian Coal Mines in $3.88 Billion Exit Deal

BY COMFORT OGBONNA

Anglo American has agreed to sell its steelmaking coal mines in Australia to UK-based miner Dhilmar in a deal worth up to $3.88 billion, marking a major step in its exit from the coal sector as it moves to streamline operations ahead of a planned merger with Canada’s Teck Resources.

The London-listed mining company is divesting assets located in Queensland’s Bowen Basin, one of the world’s most important regions for steelmaking coal production. The sale forms part of Anglo American’s broader strategy to simplify its portfolio, reduce debt, and focus on core commodities, particularly copper, as it prepares for the combination with Teck Resources that will create a major global copper-focused mining group.

Under the terms of the agreement, Dhilmar will pay $2.3 billion in upfront cash, with an additional $1.58 billion tied to future coal price performance. Anglo American said the proceeds from the transaction will primarily be used to reduce its debt burden, strengthening its balance sheet ahead of the merger.

The company’s shares fell around 1.7% following the announcement, reflecting broader weakness across the mining sector amid concerns about inflation and global economic uncertainty.

Anglo American Chief Executive Duncan Wanblad said the deal represents the final stage of the company’s withdrawal from steelmaking coal, a segment it has been gradually exiting as part of a long-term restructuring plan. The shift reflects growing pressure on major mining companies to focus on cleaner, higher-growth materials such as copper, which is essential for electrification and renewable energy infrastructure.

The exit from Australian coal assets has been under consideration for some time. Last year, U.S.-based Peabody Energy withdrew its $3.78 billion bid for the same assets after negotiations collapsed following disagreements over pricing, particularly after a mine fire disrupted operations. Anglo American has also confirmed it continues to pursue arbitration against Peabody over the failed transaction.

Dhilmar, the buyer of the assets, is a privately held mining company with operations spanning multiple commodities. Its flagship asset is the Eleonore gold mine in Canada, which it acquired from Newmont Corporation last year. The company is led by CEO Alexander Ramlie, who has previously worked across several Indonesian mining firms, including PT Amman Mineral Internasional, a major copper and gold producer.

The acquisition significantly expands Dhilmar’s footprint in the global mining industry, giving it access to some of the most productive steelmaking coal reserves in the world. Industry analysts say the move also highlights continued investor interest in coal assets despite long-term global pressure to transition toward lower-carbon energy sources.

For Anglo American, the deal represents a decisive shift in strategy. By exiting coal and focusing on copper and other critical minerals, the company is positioning itself to benefit from rising global demand driven by electric vehicles, renewable energy systems, and expanding power infrastructure.

The planned merger with Teck Resources is expected to further strengthen that focus, creating a mining powerhouse with significant exposure to metals that are increasingly central to the global energy transition.