Anglo American has completed the sale of its minority interest in Jellinbah Group to Zashvin for $1.6 billion, marking the first step in the divestment of its steelmaking coal portfolio.
The transaction includes a final payment of $1.4 billion, adding to the $228 million already received.
Anglo American initially announced the agreement in November 2024, with the deal closing ahead of its anticipated completion in the second quarter of 2025.
Zashvin was previously a one-third shareholder in Jellinbah, which owns a 70 per cent interest in the Jellinbah East and Lake Vermont steelmaking coal mines, alongside Anglo American and Marubeni, with the company now increasing its stake in the joint venture to 66.6 per cent.
Anglo American chief executive Duncan Wanblad said the divestment bolsters the company’s financial position while advancing its strategic realignment.
“We are pleased to complete this first step in the divestment of our steelmaking coal portfolio, realising $US1 billion of cash proceeds sooner than expected, further strengthening our balance sheet,” Wanblad said.
“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.
“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 director James Xu acknowledged Anglo American’s role in Jellinbah’s success while reinforcing the company’s long-term commitment to Queensland’s coal industry.
“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.”
Anglo American is also progressing the sale of its remaining steelmaking coal assets to Peabody, a deal that could generate up to $US3.8 billion ($6 billion) in additional cash proceeds.