Anglo-American to sell stake in Australian steelmaking coal mines for US$1.1 billion

UK-BASED Anglo-American said on Monday (Nov 4) that it will sell its minority stake in a joint venture that owns a 70 per cent interest in the Jellinbah East and Lake Vermont steelmaking coal mines in Australia, for about US$1.1 billion.

The company, which owns 33.3 per cent of Jellinbah Group – the operator of the Queensland-based mines – will sell the stake to Zashvin, an Australian electric power generation facility operator that already owns a one-third interest in the mines.

Japanese conglomerate Marubeni owns the remaining stake.

“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,” Anglo-American’s CEO Duncan Wanblad said in a statement.

The firm is in the midst of restructuring its business after fending off a US$49 billion takeover from bigger rival BHP Group in May. REUTERS