- Dhilmar deal valued at $3.875 billion
- Transaction completion expected by Q1 2027
Anglo American has agreed to sell its Australian steelmaking coal business to UK-based mining company Dhilmar, a privately held UK-registered mining company. The acquisition aligns with its strategy of operating long-life mining assets across established mining jurisdictions. The deal proceeds of up to $3.875 billion marks another major step in the company’s portfolio restructuring ahead of its proposed merger with Teck.
The deal includes an upfront cash payment of $2.3 billion at completion and a price-linked earnout of up to $1.575 billion over five years, linked to future coal prices and production performance. Anglo American stated that the proceeds will be used mainly to reduce net debt.
The transaction is expected to close by Q1 2027, subject to regulatory approvals and customary conditions.
Anglo American chief executive Duncan Wanblad said the agreement reflected the quality of the company’s steelmaking coal assets and would complete its exit from the steelmaking coal business. The company added that total proceeds from its steelmaking coal asset sales could reach around $4.9 billion, including the earlier sale of its interest in the Jellinbah mine for nearly $1 billion.
The portfolio being sold includes major Australian coal assets such as Moranbah North, Grosvenor, Capcoal, Dawson and Moranbah South joint ventures.
Meanwhile, Anglo American confirmed that it continues arbitration proceedings against Peabody regarding the failed November 2024 agreement for the same coal assets. The company stated it remained confident that the Moranbah North incident cited by Peabody did not qualify as a material adverse change under the agreement.
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