Anglo American, the mining group founded by South African billionaire Ernest Oppenheimer, said on Monday it would sell its Australian steelmaking coal business for up to $3.88 billion as the company deepens a sweeping overhaul aimed at focusing on copper and iron ore.
The sale of its Queensland Bowen Basin coal assets to London-based privately held mining company Dhilmar forms part of Anglo American’s strategy to divest non-core assets, cut debt and sharpen focus on commodities tied to the global energy transition.
The transaction includes $2.3 billion in upfront cash and as much as $1.58 billion in additional payments linked to coal prices.
Even so, shares in the miner fell 1.7% amid broader weakness across the mining sector driven by inflation fears, according to Reuters.
Chief Executive Officer Duncan Wanblad, a South African-born executive from Randfontein, said the transaction would complete the miner’s exit from steelmaking coal.
