Anglo finalises Jellinbah sale to Zashvin

"We are pleased to complete this first step in the divestment of our steelmaking coal portfolio, realising $1bn of cash proceeds sooner than expected, further strengthening our balance sheet,” wrote Anglo CEO Duncan Wanblad in a company statement.

“We wish our JV partners, Zashvin and Marubeni, every success for the future of Jellinbah. We have also made good progress towards the completion of the sale of the balance of our steelmaking coal portfolio to Peabody for additional cash consideration of up to $3.8bn."

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Anglo American’s decision to exit the steelmaking coal sector is part of a broader strategy to focus on high-margin commodities such as copper, premium iron ore, and crop nutrients.

Wanblad says that this transition will enhance the company’s resilience and position it for long-term growth.

"We have moved at pace to simplify Anglo American to create an exciting and differentiated investment proposition focused on our world-class copper, premium iron ore and crop nutrients businesses.”

This more cash generative and higher margin portfolio will offer greater through-the-cycle resilience, with the benefit of significant high quality and well-sequenced growth options across each product vertical, including a clear path to increase annual copper production to more than one million tonnes over the next decade.

Queensland coal confidence

Zashvin, which previously held an equal 33.3% stake in Jellinbah alongside Anglo and Marubeni, now holds a majority interest.

"Jellinbah’s success since 1988 has been driven by the partnerships we have forged both locally and overseas,” said Zashvin’s James Xu.

“We pay tribute to Anglo American’s significant role in this journey and its dedication to making this historic transaction smooth and efficient.”

As a proudly Queensland family-owned company, our increased investment reflects our confidence in Queensland’s coal industry and our workforce, and our commitment to continue to work with central Queenslanders.

Critical to restructuring

The Jellinbah Group operates two key steelmaking coal mines – Jellinbah East and Lake Vermont.

While Anglo American was a shareholder, it did not operate or market production from these assets.

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This sale is critical to Anglo’s broader restructuring efforts, which include divestments in steelmaking coal and nickel, the demerger of its PGMs business Amplats, and the separation of its De Beers diamond business.