Anglo American has agreed to divest its 33.3% minority stake in Jellinbah Group, a joint venture (JV) that owns a 70% interest in the Jellinbah East and Lake Vermont steelmaking coal mines in Australia, to Zashvin in an all-cash deal worth $1.1bn.
Zashvin is an existing 33.3% shareholder in the JV, alongside Anglo American and Marubeni.
Anglo American is not involved in the operation or marketing of the production volumes from the Jellinbah steelmaking coal mines.
Situated near Bluff on the Tropic of Capricorn, the Jellinbah mine is an open cut operation. It involves overburden drilling and blasting, followed by conventional removal using truck and shovel, along with dozer push.
The Lake Vermont mine is also an open cut operation located near Dysart. It has produced hard coking coal and mid volatile PCI coal through overburden drilling and blasting, followed by conventional removal with truck and shovel and dozer push.
Zashvin’s James Xu said: “Jellinbah’s success has been driven by robust partnerships. We’re appreciative of Anglo American’s significant role in this journey and we value its dedication to making this transaction smooth and efficient.
“As a family that’s been with Jellinbah since its inception, our increased investment not only reflects our confidence in Queensland’s coal industry but also our commitment to supporting the central Queensland community.”
In 2023, Anglo American’s share in the Jellinbah mines contributed $779m to its group revenue and $373m to underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA).
During the first half of this year, the company’s interest in the Jellinbah steelmaking coal mines generated $354m in group revenue and $153m in underlying EBITDA.
Anglo American CEO Duncan Wanblad said: “We are delighted to have agreed terms with our JV partner, Zashvin, for the sale of our minority interest in Jellinbah. The cash proceeds of A$1.6bn reflect the exceptional quality of the Jellinbah business.
“Our process to sell the rest of our steelmaking coal business – being the portfolio of steelmaking coal mines that we operate in Australia – is now at an advanced stage and we are on track to agree terms in the coming months.”
The deal is part of Anglo American’s broader strategy to restructure its business through the sale and divestment of non-core assets, following its successful defence against a $49bn takeover bid from BHP Group in May this year.
Subject to regulatory approvals, the transaction is anticipated to close in Q2 2025.
