Anglo American Plc, a prominent mining company, has officially announced the completion of its divestiture of a 33.3% minority stake in Jellinbah Group Pty Ltd. This joint venture controls a 70% interest in the Jellinbah East and Lake Vermont coking coal mines located in Australia. The stake has been sold to Zashvin Pty Ltd.
The transaction terms stipulated that Anglo American would receive a total of A$1.4 billion, supplementing the A$228 million it had previously acquired. This brings the total proceeds from the sale to A$1.6 billion, roughly equating to US$1 billion.
Originally, the sale agreement was disclosed in early November of the prior year, with the deal slated for completion by the second quarter of 2025.
Zashvin was already a one-third stakeholder in Jellinbah alongside Anglo American and Marubeni. Anglo American clarified that it was not involved in the operation of Jellinbah Group mines and did not engage in the marketing of its production volumes.
Duncan Wanblad, the Chief Executive Officer of Anglo American, remarked, "We are pleased to have completed this initial phase of divesting our steelmaking coal portfolio, achieving US$1 billion in cash proceeds ahead of schedule, which further fortifies our balance sheet. We have also made significant headway towards finalizing the sale of the remainder of our steelmaking coal assets to Peabody, potentially yielding an additional consideration of up to US$3.8 billion."
