Anglo American PLC (LSE:AAL) announced on Monday that it has reached an agreement to sell its Australian steelmaking coal operations to Indonesia-based Dhilmar Ltd in a transaction valued at up to $3.875 billion in cash.
Deal structure includes upfront payment and earnout
Under the terms of the agreement, Anglo will receive an initial cash payment of $2.3 billion, with the remaining value tied to a price-linked earnout mechanism, according to the company’s statement. The mining group said proceeds from the disposal will be used to lower its net debt position.
Portfolio reshaping continues ahead of Teck merger
The divestment forms part of Anglo American’s broader strategy to streamline its portfolio ahead of its planned merger with Canada’s Teck Resources (NYSE:TECK). The combination is intended to create a mining company focused primarily on copper and other critical minerals.
Anglo had previously agreed to sell the same steelmaking coal assets to Peabody, but that transaction collapsed in 2025 after a serious accident at the Moranbah North mine forced a suspension of production at the portfolio’s largest operation.
Peabody later terminated the purchase agreements and entered arbitration proceedings with Anglo regarding a dispute over a deposit payment. Anglo confirmed on Monday that it continues to pursue the arbitration process alongside the newly announced transaction.
Dhilmar expands into Australian mining sector
Dhilmar remains a relatively new entrant to the Australian mining industry and currently has no major assets in the country. The company is registered in the UK and operates from Indonesia.
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