Anglo American has agreed to sell its portfolio of steelmaking coal mines in Australia to the UK-registered mining company, Dhilmar, for $3.87bn.

The agreed cash consideration comprises an upfront cash consideration of $2.3bn payable to Dhilmar at completion and a price-linked earnout of $1.57bn.

The British multinational mining firm said it will use the cash proceeds to reduce net debt.

In parallel with the transaction, Anglo American continues to pursue the arbitration with Peabody in relation to its November 2024 agreement to acquire the steelmaking coal portfolio.

Chief executive officer at Anglo American, Duncan Wanblad, stated: "Our agreement for Dhilmar to acquire our steelmaking coal business in Australia is testament to the high quality of these assets and our people. Dhilmar's leadership brings considerable experience of operating major mining assets, including in steelmaking coal, in Southeast Asia and Canada. We will work together with the Dhilmar team and with our workforce, local communities, Government, customers, and partners to ensure a successful transition.

"This agreement represents another major step in the simplification of our portfolio ahead of completing our merger with Teck. Through this transaction, we will complete our exit from steelmaking coal, delivering aggregate cash proceeds of up to $4.9bn, given the prior completion of the sale of our interest in the Jellinbah mine for approximately $1bn."

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