Diversified mining giant Anglo American announced on Nov. 25 that it has entered into a definitive agreement to sell its entire metallurgical coal business.

The announcement disclosed that Anglo American sold its portfolio of Australian metallurgical coal mines to U.S. coal miner Peabody Energy for $3.8 billion. The move is part of Anglo American's ongoing restructuring efforts.

The deal includes $2.05 billion in upfront cash consideration, $725 million in deferred cash consideration, up to $550 million in price-linked gains, and $450 million in contingent cash consideration related to the reopening of the Grosvenor mine.

This metallurgical coal portfolio primarily consists of an 88.0% interest in the Moranbah North JV; a 70% interest in the Capcoal JV; an 86.36% interest in the Roper Creek JV; the Dawson JV, the Dawson South JV ( Dawson South JV, Dawson South Exploration JV and 51.0% interest in Theodore South JV; and a 50.0% interest in Moranbah South JV.

Earlier, Anglo American sold its 33.3% stake in the Jellinbah Group Pty Ltd joint venture, a 70% interest in two metallurgical coal mines in Australia, Jellinbah East and Lake Vermont, for $1.1 billion.

Previously, Anglo American announced a restructuring plan in May as part of a plan to reject a $49 billion takeover by BHP Billiton, the world's largest mining company.

Under the plan, Anglo American will focus on growth areas such as copper, high-quality iron ore and crop nutrients, phasing out assets such as coal, platinum, nickel and diamonds.

Anglo American Group CEO Duncan Wanblad said that the spin-off of Anglo American Platinum is expected to be completed by mid-2025. He also revealed that its nickel business was very popular and that the sale process was “progressing well”.

Article Source：sxcoal.com