Anglo American has agreed to sell its 33.3% minority stake in Jellinbah to Australian firm, Zashvin, for approximately £810m.

Jellinbah is a joint venture that owns a 70% interest in the Jellinbah East and Lake Vermont steelmaking coal mines in Australia.

Zashvin is already an existing 33.3% shareholder in Jellinbah alongside Anglo American and Marubeni.

However, Anglo American does not operate the Jellinbah mine or market any of the production volumes from the firm.

Chief executive at Anglo American, Duncan Wanblad, said: "We are delighted to have agreed terms with our JV partner, Zashvin, for the sale of our minority interest in Jellinbah. The cash proceeds of A$1.6 billion (£810m) reflect the exceptional quality of the Jellinbah business.

"Our process to sell the rest of our steelmaking coal business - being the portfolio of steelmaking coal mines that we operate in Australia - is now at an advanced stage and we are on track to agree terms in the coming months."

Investment director at AJ Bell, Russ Mould, stated that the deal got a "welcome reception from the market", both for the tidy injection of cash involved and for signs the company is executing on a strategy to sell non-core assets.

He concluded: "This might make the company easier to swallow for a potential acquirer. BHP may have moved on after its takeover attempts earlier this year but other parties might be interested in Anglo’s extensive copper assets."

The deal is subject to regulatory approval and is expected to complete in the second quarter of 2025.

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