LONDON (AFP) – Mining group Anglo American yesterday said it had agreed to offload its remaining Australian coal mines for steelmaking to US group Peabody Energy for up to USD3.8 billion.
The move comes as countries move away from highly-polluting coal production to meet net zero carbon emissions, including a deal struck by some at the recent COP29 climate summit not to build any new unabated coal-power plants, which produce coal without use of carbon capture technology.
“The sale of our steelmaking coal business is another important step towards delivering the strategy that we set out in May to create a world class copper, premium iron ore and crop nutrients business,” chief executive Duncan Wanblad of London-listed Anglo American, said in a statement.
Anglo this year announced plans to sell its coal, diamond and platinum businesses after rejecting a USD49 billion takeover offer from mining rival BHP.
“All the transactions to deliver our portfolio transformation are well in train,” Wanblad said yesterday.
“The demerger of Anglo American Platinum is expected by mid-2025 and we have seen strong interest in our nickel business with the sale process well progressed. We expect (diamonds business) De Beers to follow.”
Wanblad added that the group was “absolutely focused” on cutting costs and creating “a much simpler, more resilient and more agile business that will enable full market value recognition”.
Earlier this month, Anglo agreed to sell its other coal-mining interest – a stake in Australian miner Jellinbah – for USD1.1 billion.
Peabody chief executive Jim Grech said his group looked forward to integrating the other mines into its business.
“This transformative transaction presents a rare opportunity for Peabody to acquire premier steelmaking coal assets at a compelling valuation as we reweight our portfolio toward seaborne metallurgical coal,” he added.
The deal is expected to close in the third quarter of next year, subject to regulatory approvals.
Following yesterday’s announcement, shares in Anglo jumped 1.5 per cent in morning deals on London’s top-tier FTSE 100 index, which was up 0.4 per cent overall.
A tie-up between Anglo and BHP – two of the world’s largest resources companies – would have fundamentally reshaped the mining sector, with far-reaching consequences for commodities markets and the global energy transition.
BHP’s interest was largely stoked by its hunger to secure a reliable copper supply. Anglo American’s South American copper holdings include four of the largest copper mines in the world.
An electrical conductor used in wiring, the metal is seen as a bedrock of emerging clean-energy industries – a crucial component to manufacture solar panels, electric vehicles and rechargeable batteries.
It is also widely regarded as vital for the development of cutting-edge AI technology.
