Anglo American Completes Sale of Jellinbah Stake for $1 Billion

The completion of this sale underscores Anglo American’s commitment to reshaping its portfolio and focusing on future growth in critical minerals.

Anglo American plc ("Anglo American") has successfully completed the sale of its 33.3% minority interest in Jellinbah Group Pty Ltd ("Jellinbah") to Zashvin Pty Ltd ("Zashvin"). This transaction includes a 70% interest in the Jellinbah East and Lake Vermont steelmaking coal mines in Australia ("Jellinbah Group mines").

Transaction Details

Anglo American has received a total of A$1.6 billion (approximately US$1.0 billion at current exchange rates) in cash proceeds, including A$228 million already received. The sale agreement was initially announced on November 4, 2024, with completion expected in the second quarter of 2025, making this an earlier-than-anticipated closure.

Zashvin, an existing 33.33% shareholder in Jellinbah alongside Anglo American and Marubeni, will now take full control of its stake in the joint venture. Notably, Anglo American did not operate or market the production volumes from the Jellinbah Group mines.

Anglo American's Strategic Shift

Duncan Wanblad, Chief Executive of Anglo American, highlighted the significance of this transaction:

“We are pleased to complete this first step in the divestment of our steelmaking coal portfolio, realizing US$1 billion of cash proceeds sooner than expected and 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 US$3.8 billion.”

Wanblad also emphasized Anglo American’s broader strategic direction:

“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.”

Zashvin’s Vision for Jellinbah

James Xu of Zashvin expressed enthusiasm for the acquisition and the company’s commitment to the Australian coal industry:

“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.”

Industry Impact and Future Outlook

This sale marks the first major step in Anglo American’s planned divestment of its steelmaking coal assets. With an agreement already in place to sell its remaining coal portfolio to Peabody, Anglo American continues to streamline its operations, focusing on higher-margin commodities such as copper and iron ore.

Meanwhile, Zashvin’s expanded stake in Jellinbah aligns with its long-term vision for strengthening its role in Queensland’s coal industry. With demand for high-quality steelmaking coal remaining strong in key global markets, this acquisition positions Zashvin for sustained growth.