Tue. Dec 3rd, 2024

Update: Anglo American Sells Its Share in Australian Coal Mines for A$1.6 Billion

ByLisa Luckas

11/04/2024
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  • Anglo American to sell its 33% stake in two Australian coal mines for A$1.6 billion.
  • The buyer, Zashvin, is an existing partner in the mines.
  • Sale expected to be finalized by mid-2025.

Mon Nov 4 06:49:10 -2024 UTC – Anglo American, the global mining company, announced that it has agreed to sell its share in two Australian coal mines to its partner, Zashvin Pty Limited, for A$1.6 billion, or about US$1.1 billion. Anglo American’s 33% stake in Jellinbah Group Pty Ltd, which owns the Jellinbah East and Lake Vermont mines in Queensland, will be transferred to Zashvin, giving it a larger ownership role.

The sale is expected to complete in the second quarter of 2025, pending regulatory approvals. Zashvin, which already owns 33% of Jellinbah Group, will now hold a two-thirds majority. Anglo American does not manage or sell coal from these mines, which focus on producing steelmaking coal.

A Strategic Shift for Anglo American

Anglo American CEO Duncan Wanblad said the sale is part of a broader plan to focus on more profitable resources, such as copper, premium iron ore, and crop nutrients. The company is also working on selling other coal assets in Australia to streamline its business.

“We’re simplifying Anglo American to focus on products that support a sustainable future,” said Wanblad. “This shift will help make us a stronger and more reliable business through economic cycles.”

Zashvin’s Investment in Queensland

James Xu, a representative of Zashvin, expressed excitement over the increased ownership. “Jellinbah has thrived on strong partnerships,” Xu said. “We appreciate Anglo American’s contribution to the project and look forward to continuing to support Queensland’s coal industry and local communities.”

This sale is part of Anglo American’s move to concentrate on assets with high growth potential, like copper, which it plans to expand significantly by the early 2030s.

Insights from NYU Study on peak globalization.

ByLisa Luckas

Lisa Luckas is a Sr. Business News Editor at Nobot.News.

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