Anglo American sells coking coal business to Dhilmar

The total payment includes an upfront cash consideration of US$2.3 billion payable by Dhilmar at completion, and a price-linked additional fee of up to US$1.575 billion, Anglo notes in the statement. It expects to complete the transaction by the first quarter of 2027, it said.

"Our agreement for Dhilmar to acquire our steelmaking coal business in Australia is testament to the high quality of these assets and our people," said Duncan Wanblad, CEO of Anglo American in a statement.

While little information is accessible from Dhilmar's website, the Anglo American statement introduces it as a privately held, UK-registered mining company with "considerable experience of operating major mining assets, including in steelmaking coal, in Southeast Asia and Canada".

However, the only asset Dhilmar owns is the Éléonore gold mine in Canada's Québec, which it acquired in 2025 from Newmont Corporation, a multinational miner headquartered in Denver in the US, Mysteel Global learns.

"This agreement represents another major step in the simplification of our portfolio ahead of completing our merger with Teck. Through this transaction, we will complete our exit from steelmaking coal," Wanblad added. Last year, Anglo American and Canada's Teck Resources had agreed to merge into a copper-mining giant, as reported. Progress on finalizing the deal, valued at about $53 billion, continues.

 Anglo American's Steelmaking Coal Portfolio consists primarily of an 88% interest in the Moranbah North and Grosvenor joint ventures; a 70% interest in the Capcoal joint venture; an 86.36% interest in the Roper Creek joint venture; a 51% interest in the Dawson joint venture, Dawson South joint venture, Dawson South Exploration joint venture and the Theodore South joint venture; and a 50% interest in the Moranbah South joint venture, according to the statement. All properties are in Queensland.

Early in last year, Anglo American was close to concluding a sale of its coking coal mines to US coal producer Peabody Energy Corp for a price up to US$3.78 billion. However, in April the latter walked away from the trade after an underground fire at the Moranbah North mine, as reported.

According to updates from Anglo American, longwall operations at the mine have been gradually recovering since the first quarter this year. The adjacent Grosvenor mine, however, is expected to remain suspended until late 2027. Operations at the mine were halted after a fire blast in June 2024.

Written by Adrian Zhou, zhouwenhaoa@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com