Anglo American has announced the sale of its portfolio of steelmaking coal mines in Queensland’s Bowen Basin to UK-registered mining company Dhilmar Limited in a deal worth up to $US3.8 billion ($5.29 billion).

The portfolio consists of a range of joint venture interests across central Queensland, including an 88 per cent stake in the Moranbah North and Grosvenor joint ventures; a 70 per cent interest in the Capcoal joint venture; and an 86 per cent interest in the Roper Creek joint venture.

Other assets in the portfolio include Dawson, Dawson South, Dawson South Exploration and Theodore South joint ventures also located in the Bowen Basin.

The sale has been described as a “testament” to Anglo American’s high-quality assets spread across Australia and is a “major step” in simplifying the company’s portfolio.

“Dhilmar’s leadership brings considerable experience of operating major mining assets, including in steelmaking coal, in Southeast Asia and Canada,” Anglo American chief executive officer Duncan Wanblad said in a statement.

“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 $US4.9 billion, given the prior completion of the sale of our interest in the Jellinbah mine for approximately $US1 billion.”

The deal is understood to be paid in two parts, with $3.2 billion being given upfront and an additional $2.1 billion to be earned if certain performance targets are met.

It’s understood that the deal is subject to a number of conditions, including customary competition and regulatory clearances, with formal completion expected by the first quarter of 2027.

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