Anglo American Exits Coal Mining with $3.8 Billion Sale of Australian Assets to Peabody

Nov 25, 2024, 07:31 AM

Anglo American has agreed to sell its steelmaking coal assets, including five Australian mines, to Peabody Energy for up to $3.8 billion. The deal comprises an upfront payment of $2.05 billion, $725 million in deferred payments over five years, and up to $1 billion in contingent payments if metallurgical coal prices exceed certain levels above $235 per tonne over the next five years. Additionally, BUMA may option the Dawson mine for $445 million. Including the already announced sale of its interest in Jellinbah Group, Anglo American expects to generate up to $4.9 billion in total cash proceeds from the sale of its steelmaking coal business. This transaction aligns with Anglo American's strategy to exit coal mining.