JOHANNESBURG (miningweekly.com) – Copper-, iron-ore- and crop-nutrient-focused Anglo American reported on Monday that it expects to complete the sale of a minority interest it holds in an Australian steelmaking coal business in the second quarter of next year.

The Johannesburg- and London-listed Anglo is implementing structural changes that include selling off steelmaking coal and nickel businesses, demerging platinum group metals mining company Anglo American Platinum, and separating the iconic diamond mining and marketing company De Beers.

As part of accelerated portfolio downsizing and future-facing growth priorities, the terms for the $1.1-billion cash sale of 33.3% of Jellinbah – a joint venture that owns 70% of the Jellinbah East and Lake Vermont steelmaking coal mines in Queensland – have been agreed with privately owned Zashvin, also a 33.3% shareholder in Jellinbah, alongside Anglo and Japanese trading and investment conglomerate Marubeni.

“The cash proceeds reflect the exceptional quality of the Jellinbah business,” Anglo CE Duncan Wanblad stated in a release to Mining Weekly.

Anglo does not market any of Jellinbah’s steelmaking coal production volumes nor does it operate the Jellinbah mines, which are said to have coking coal reserves amounting to 196-million tonnes.

In the first half of this year, Anglo’s one-third interest in Jellinbah contributed $354-million to group revenue and $153-million to earnings before interest, taxes, depreciation and amortisation (Ebitda). Last year, full-year revenue was $779-million and Ebitda $373-million.

The sale, conditional on regulatory approvals, is foreseen to be concluded before 30 June 2025.

The process of selling the rest of the Anglo steelmaking coal business – being the portfolio of steelmaking coal mines that it operates in Australia – is reiterated to be at an advanced stage – “and we’re on track to agree terms in the coming months”, Wanblad added.

James Xu of Zashvin spoke of Anglo's significant role in Jellinbah's successful journey and expressed appreciation for Anglo’s dedication towards making the transaction “smooth and efficient”.

“As a family that’s been with Jellinbah since its inception, our increased investment not only reflects our confidence in Queensland’s coal industry but also our commitment to supporting the central Queensland community,” said Xu.

Wanblad reported that portfolio simplification progress was continuing as the company advanced towards becoming a producer of “highly cash generative and much higher margin” future-enabling decarbonisation, improved living standards, and food security products.

These, he said, would offer greater resilience through cycles and a path to copper production of more than one-million tonnes a year by the early 2030s.