Anglo American has agreed to sell its Australian steelmaking coal mines to fellow UK-based miner Dhilmar in a deal worth up to $3.88 billion (£2.9 billion), the FTSE 100 mining giant announced today. The transaction marks the final step in the company’s exit from the steelmaking coal sector as it prepares for a $50 billion (£37.5 billion) merger with Canada’s Teck Resources.
Dhilmar, a privately held company registered in the United Kingdom, will acquire Anglo American’s portfolio of underground longwall operations that produce premium hard coking coal. The deal includes interests in the Moranbah North and Grosvenor joint ventures — each 88 per cent owned by Anglo American — as well as the Capcoal joint venture (70 per cent), the Roper Creek joint venture (86.36 per cent) and the Dawson joint venture (51 per cent).
Duncan Wanblad, chief executive of Anglo American, said: “Our agreement for Dhilmar to acquire our steelmaking coal business in Australia is testament to the high quality of these assets and our people.” He added that Dhilmar’s leadership brings “considerable experience of operating major mining assets, including in steelmaking coal, in Southeast Asia and Canada”. The two companies will work together to ensure a successful transition, Wanblad said.
The buyer has rapidly expanded its portfolio in recent years. In November 2024, Dhilmar acquired the Éléonore gold mine in Canada from Newmont Corporation for $795 million (£595 million), a deal that completed in March 2025. The company’s leadership also previously worked with Newmont in 2016 to acquire the Batu Hijau copper and gold mine in Indonesia. According to corporate records verified by Vistra (UK) Limited, Dhilmar’s CEO and managing director is Alexander Ramlie, with Mayasari Jasmine Timan and Brett Daniel Goldblatt also listed as verified individuals.
The sale comes amid Anglo American’s broader strategic overhaul, a process triggered by the company successfully fending off a takeover bid from BHP Group in 2024. The group is now focused on simplifying its portfolio around copper, premium iron ore and crop nutrients. Last year, Anglo American completed the sale of its 33.3 per cent minority interest in the Jellinbah Group to Zashvin for A$1.6 billion (approximately $1 billion). Combined with the Dhilmar deal, the total cash proceeds from Anglo American’s exit from steelmaking coal are expected to reach up to $4.9 billion.
The Dhilmar transaction replaces an earlier deal that collapsed. Anglo American had previously agreed to sell the same coal portfolio to Peabody Energy for $3.775 billion, but Peabody withdrew in August 2025 after a fire and subsequent shutdown at the Moranbah North mine, which the US company deemed a “material adverse change”. Anglo American is continuing arbitration proceedings with Peabody regarding that collapsed agreement.
The disposal is the most significant element of Anglo American’s streamlining ahead of its planned merger with Teck Resources. Shareholders of both companies have already voted in favour of the combination, which will create a new entity called Anglo Teck. The merged group is expected to become one of the world’s largest copper producers, offering investors more than 70 per cent exposure to copper, alongside significant positions in premium iron ore, zinc and crop nutrients. The merger is valued at approximately $50 billion (£37.5 billion). Anglo American shareholders will own roughly 62.4 per cent of the combined group, with Teck shareholders holding the remaining 37.6 per cent. The new company will be headquartered in Vancouver, Canada, with Wanblad serving as chief executive and Teck’s Jonathan Price as deputy chief executive. Pre-tax annual cost savings of $800 million are expected.
Regulatory approval for the merger is anticipated to take 12 to 18 months. The Dhilmar coal deal is also subject to regulatory clearance and is expected to complete by the first quarter of 2027.
Financial structure of the deal
The transaction’s total value of up to $3.875 billion (£2.9 billion) is split into two components. Dhilmar will make an upfront cash payment of $2.3 billion (£1.72 billion) when the deal closes. In addition, a further $1.575 billion (£1.18 billion) will be paid in performance-linked payments, known as earnouts, contingent on the future performance of the mines. Anglo American said it will use the cash proceeds to reduce net debt.
The Australian steelmaking coal assets being sold are all underground longwall operations located in the Bowen Basin and other regions. They include the Moranbah North mine (88 per cent ownership), the Grosvenor mine (88 per cent), the Capcoal complex — comprising the Capcoal open cut and Aquila underground mines — (70 per cent), the Dawson mine (51 per cent), the Roper Creek joint venture (86.36 per cent), the Dawson South joint venture and the Dawson South Exploration joint venture, and the Theodore South project.
Australia remains the world’s leading seaborne coking coal supplier, and metallurgical coal exports are forecast to rise in the near term, driven by demand from India and Japan. Despite the steelmaking sector’s reliance on coking coal, some analysts predict a decline in Australian metallurgical coal exports by 2030 as steelmaking technologies evolve, and the International Energy Agency forecasts a gradual decline in global met coal demand. Metallurgical coal mines are also significant emitters of methane, contributing to the carbon footprint of coal-based steelmaking. Australia’s mining sector is highly regulated, with approvals managed at the state and territory level, and foreign investment in mining assets is subject to scrutiny under specific thresholds.
Dhilmar’s acquisition of Anglo American’s coal portfolio reflects the company’s continued focus on owning and operating long-life mining assets, according to the company, which emphasises a corporate culture based on safety, innovation and collaboration.
