Anglo American has wrapped up the sale of its 33.3% minority interest in Jellinbah Group, a joint venture (JV) holding a 70% interest in Australia’s Jellinbah East and Lake Vermont steelmaking coal mines to Zashvin in a deal worth A$1.6bn ($1bn).
Jellinbah Group operates as a JV between Zashvin, Anglo American, and Marubeni, each holding a 33.3% stake before the transaction.
Anglo American did not operate the Jellinbah East and Lake Vermont mines or market any of their production volumes.
Zashvin’s James Xu 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.”
Announced in November 2024, the transaction was expected to close in Q2 2025.
Under the terms of the deal, Anglo American has received A$1.4bn ($870m) in addition to the A$228m ($142m) previously paid.
The Jellinbah East mine, situated near Bluff on the Tropic of Capricorn, is an open-cut operation. It involves overburden drilling and blasting, followed by removal using truck and shovel methods, alongside dozer push techniques.
Located near Dysart, the Lake Vermont mine is also an open-cut operation.
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 methods.
The sale of stake in Jellinbah Group forms part of Anglo American’s broader strategy to restructure its business through the divestment of non-core assets.
Anglo American chief executive 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.”
