Anglo American exits Australia steelmaking coal business for $3.9 billion

Australia

LONDON, May 18, 2026 – Anglo American has agreed to sell its steelmaking coal portfolio in Australia to mining company Dhilmar for a cash consideration of up to USD 3.875 billion, Anglo American announced on Monday.

The consideration comprises a USD 2.3-billion cash payment upon closing of the deal and a price-linked earnout of up to USD 1.575 billion over the five years following the transaction, calculated on the basis of port-royalty incremental revenue from coal sales.

Anglo American said it plans to use the proceeds from the divestment to reduce net debt. The deal is expected to close by Q1 2027.

“This agreement represents another major step in the simplification of our portfolio ahead of completing our merger with Teck,” Anglo American CEO Duncan Wanblad said. “Through this transaction, we will complete our exit from steelmaking coal, delivering aggregate cash proceeds of up to USD 4.9 billion, given the prior completion of the sale of our interest in the Jellinbah mine for approximately USD 1 billion.”

Anglo American and Teck Resources announced in September 2025 their agreement to merge into Anglo Teck, a Canada-headquartered company with more than 70% copper exposure.

Anglo American’s Australia portfolio consists of operating mines, development projects and interests in joint ventures. Its assets include Moranbah North, Grosvenor, Capcoal, Roper Creek, Dawson, Dawson South, Dawson South Exploration, Theodore South and Moranbah South.

Dhilmar is a privately held UK-registered mining company that engages in surface and underground mining. In 2025, the company acquired the Éléonore gold mine in Canada from Newmont Corporation.

Photo courtesy of Anglo American