Anglo American Offloads Jellinbah Stake for $1.1 Billion, Accelerates Restructuring

Anglo American, the global mining giant, has taken another significant step in its strategic restructuring. It has agreed to sell its 33.3% minority interest in Jellinbah Group to Zashvin Pty Limited for a cash consideration of A$1.6 billion (approximately US$1.1 billion) on November 4.

Jellinbah Group currently owns a 70% interest in the Jellinbah East and Lake Vermont steelmaking coal mines in Australia. The sale of Anglo American's stake marks a crucial milestone in its ongoing divestment program. Notably, according to the company presser, Anglo American’s interest of  33.3% in Jellinbah Group contributed a whopping US$779 million to their group revenue in 2023.

Anglo American's strategic overhaul was initiated in May 2024, and is subject to customary regulatory approvals. It is expected to complete in the second quarter of 2025.

The sale was prompted by a takeover approach from BHP. The company has been actively pursuing a series of divestments, including the sale of its diamond business and the restructuring of its platinum operations.

This sale of the Jellinbah stake is expected to further accelerate their divestiture process. The company is also making significant progress in divesting its remaining Australian coal assets, with discussions underway with several potential buyers.

Market speculations suggest that major mining companies such as Peabody, Yancoal, and Glencore are among the potential buyers for Anglo American's remaining Australian coal assets. The company's focus on copper, iron ore, and crop nutrients is expected to position it well for long-term growth and value creation.

The move to sale off its stake aligns with Anglo American's broader strategy to prioritize copper, premium iron ore, and crop nutrients. These nutrients are seen as essential for the global energy transition. By divesting from coal assets, the company aims to streamline its operations and enhance its focus on these future-facing commodities.

"We are delighted to have agreed terms with our JV partner, Zashvin, for the sale of our minority interest in Jellinbah," said Duncan Wanblad, Chief Executive of Anglo American. "The cash proceeds of A$1.6 billion reflect the exceptional quality of the Jellinbah business. Our process to sell the rest of our steelmaking coal business is now at an advanced stage and we are on track to agree terms in the coming months," Wanblad added.

As Anglo American continues to execute its strategic plan, investors will be closely watching the company's progress in divesting its non-core assets and delivering on its ambitious growth targets for copper production.