Anglo American has announced it will sell its 33% stake in the Australian coal venture Jellinbah Group for $1.1 billion, as part of a broader shift in focus towards its copper, iron ore, and fertilizer portfolios. The sale reflects Anglo’s ongoing exit from coal assets and aligns with its strategy to concentrate on critical minerals needed for energy transition technologies. This transaction allows Anglo to accelerate its strategic refocus while securing cash to fund expansions in these other sectors.
The buyer of this stake, Zashvin Pty Ltd., already holds a one-third interest in the Jellinbah Group, with the remaining ownership in the hands of Japan’s Marubeni Corporation. The Jellinbah Group operates the Jellinbah East and Lake Vermont mines, both in Queensland, with a total annual capacity of approximately 8.6 million tonnes of steelmaking coal, a key material in producing high-quality steel. This particular type of coal has maintained demand due to its specialized application in steelmaking, contrasting with thermal coal used for power generation, which faces regulatory and market pressures amid global climate goals.
This divestment is part of Anglo American’s strategic redirection, which began with a restructuring initiative intended to streamline operations and focus on high-growth sectors. Anglo recently rejected a takeover attempt by mining giant BHP, indicating it intends to independently pursue expansion in the copper and fertilizer markets, which are seeing increasing demand due to the rise of renewable energy and electric vehicle industries.
This shift not only aligns with Anglo’s sustainable growth objectives but also caters to the investor sentiment favoring low-emission resources over fossil fuels. Further asset sales in its Australian coal division are anticipated, with discussions reportedly ongoing with other interested buyers, as Anglo seeks to exit the thermal and metallurgical coal sectors entirely.