Workers at the remote operations centre at the Anglo American Moranbah North coal mine in Moranbah, Queensland, Australia. Image: Patrick Hamilton/Bloomberg

Anglo American to sell stake in Australian coal miner Jellinbah

Deal is expected to be completed in the second quarter of 2025.

04 Nov 2024, 08:02 by Andrew Janes, Bloomberg · Moneyweb

Anglo American Plc has agreed to sell an A$1.6 billion ($1.05 billion) stake in one of its Australian coal mines, boosting the company’s efforts to execute its turnaround strategy.

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Anglo announced a restructuring earlier this year as part of a successful rebuttal of a $49 billion approach from BHP Group, the world’s biggest miner. That plan centered around exiting diamond mining by spinning off or selling its De Beers unit, separating its platinum operations and selling its coal mines.

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Anglo said Monday that it has agreed to sell its 33.3% stake in Jellinbah Group to Zashvin Pty Ltd., which already owns a third of the Australian coal miner, alongside Marubeni Corp. The deal is expected to be completed in the second quarter of 2025.

The company is also in the process of selling the rest of its Australian coal business. It’s currently in talks with about half a dozen potential buyers and said in October that it hoped to announce a deal within the coming months.

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The Jellinbah sale will be a boost for Anglo as it seeks to demonstrate progress to investors in its turnaround strategy. The sale of its bigger coal business has been complicated by a fire at its flagship mine, while plans to exit diamonds face headwinds from a slumping market.

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