Anglo American has completed the sale of its 33.3% minority interest in Jellinbah Group to Zashvin for A$1.6bn (£801.64bn).
Jellinbah Group is a joint venture (JV) that holds a 70% interest in the Jellinbah East and Lake Vermont steelmaking coal mines in Australia.
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Zashvin was already a 33.33% shareholder in the JV along with Marubeni and Anglo American.
The transaction terms have seen Anglo American receive A$1.4bn, on top of the A$228m previously received, resulting in total cash proceeds of A$1.6bn.
Anglo American CEO Duncan Wanblad said: “We are pleased to complete this first step in the divestment of our steelmaking coal portfolio, realising $1bn of cash proceeds sooner than expected, further strengthening our balance sheet.
“We wish our JV partners, Zashvin and Marubeni, every success for the future of Jellinbah. We have also made good progress towards the completion of the sale of the balance of our steelmaking coal portfolio to Peabody for additional cash consideration of up to $3.8bn.
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By GlobalData“We have moved at pace to simplify Anglo American to create an exciting and differentiated investment proposition focused on our world-class copper, premium iron ore and crop nutrients businesses.
“This more cash generative and higher margin portfolio will offer greater through-the-cycle resilience, with the benefit of significant high quality and well sequenced growth options across each product vertical, including a clear path to increase annual copper production to more than one million tonnes over the next decade,” he added.
The company revealed the agreement to sell its stake in Jellinbah on 4 November 2024, with the transaction initially expected to be finalised in the second quarter of 2025 (Q2 2025).
James Xu of Zashvin said: “Jellinbah’s success since 1988 has been driven by the partnerships we have forged both locally and overseas. We pay tribute to Anglo American’s significant role in this journey and its dedication to making this historic transaction smooth and efficient.
“As a proudly Queensland family-owned company, our increased investment reflects our confidence in Queensland’s coal industry and our workforce, and our commitment to continue to work with central Queenslanders.”
