Anglo American Plc has agreed to sell its steelmaking coal business to Peabody Energy in a deal that could reach $3.78-billion (approximately R70-billion). This sale is part of Anglo’s plan to simplify and reduce its operations after rejecting a $49-billion takeover offer from BHP Group earlier this year. The sale will provide Anglo with $2.05-billion in cash upfront, plus $725-million in deferred payments, and potential bonuses based on coal prices and the rehabilitation of its Grosvenor mine.
The coal business includes five mines in Queensland, which produced 16 million tons of coking coal in 2023. Anglo previously sold a $1.05-billion stake in another Australian coal mine.