Anglo American (LSE:AAL) has agreed to sell its Australian steelmaking coal portfolio to Dhilmar for up to US$3.875 billion in cash.
The consideration is US$2.3 billion payable at completion with a price-linked earnout of up to US$1.575 billion.
It will also receive an earnout comprising uncapped quarterly payments over five years equal to 50% of incremental post-royalty revenue above product-specific trigger prices.
Anglo said it will use the proceeds to reduce net debt and customary regulatory clearances and pre-emption arrangements are required for completion expected by the first quarter of 2027.
"This agreement represents another major step in the simplification of our portfolio ahead of completing our merger with Teck," said Duncan Wanblad, Chief Executive Officer.
The Steelmaking Coal Portfolio consists primarily of an 88.0% interest in the Moranbah North and Grosvenor joint ventures, a 70% interest in the Capcoal joint venture, an 86.36% interest in the Roper Creek joint venture, 51.0% interests in the Dawson, Dawson South, Dawson South Exploration and Theodore South joint ventures, and a 50.0% interest in the Moranbah South joint venture.
Including the earlier sale of Anglo American's Jellinbah interest for approximately US$1 billion, the company says the transaction will complete its exit from steelmaking coal and deliver aggregate cash proceeds of up to US$4.9 billion.
At the same time, Anglo said it continues to pursue arbitration with Peabody over its terminated November 2024 agreement and remains confident the Moranbah North incident did not constitute a material adverse change.
