Mining giant Anglo American has struck a deal to sell its remaining coal operations in Australia to a US rival for up to 3.78 billion US dollars (£3 billion).
London-listed Anglo said US coal miner Peabody Energy would pay 2.05 billion dollars (£1.63 billion) in cash upfront, with 725 million US dollars (£577 million) deferred as well as up to 550 million US dollars (£437 million) over five years dependent on prices and performance, and a possible further 450 million US dollars (£358 million) linked to the reopening of the Grosvenor mine.
It follows a move by Anglo earlier this month to sell its stake in an Australian coal joint venture for 1.6 billion Australian dollars (£828 million).
The moves are part of a long-term strategy by chief executive Duncan Wanblad to streamline its operations in a bid to improve financial performance.
The disposal activity also comes amid turnaround efforts at Anglo American, which fended off a £39 billion takeover proposal by rival BHP earlier this year.
Mr Wanblad said: “The sale of our steelmaking coal business is another important step towards delivering the strategy that we set out in May to create a world class copper, premium iron ore and crop nutrients business.”
Anglo also plans to offload its coal, nickel, diamond and platinum businesses, while it will keep its copper and iron ore divisions as well as its crop nutrient project.
Mr Wanblad said: “All the transactions to deliver our portfolio transformation are well in train – the demerger of Anglo American Platinum is expected by mid-2025 and we have seen strong interest in our nickel business with the sale process well progressed.
“We expect De Beers to follow, recognising its unmatched industry and brand position and good progress in working with stakeholders to position the business for long term success as we work toward separation for value.”
He added that the group was “well progressed” with delivering cost savings of one billion US dollars (£795 million), with at least another 800 million US dollars (£636 million) in recurring cost benefits from the end of 2025.
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