Anglo American, the mining group founded by South African billionaire Ernest Oppenheimer, said on Monday it would sell its Australian steelmaking coal business for up to $3.88 billion as the company deepens a sweeping overhaul aimed at focusing on copper and iron ore.
- This sale is part of a broader restructuring strategy focusing on copper and iron ore amid investor pressure to streamline and adapt to global energy transition trends.
- Anglo American will sell its Australian steelmaking coal business to Dhilmar for up to $3.88 billion, completing its exit from steelmaking coal.
- Anglo American recently reported a net loss of $3.17 billion for 2025, mainly due to restructuring costs, demergers, and writedowns, while annual copper production fell 10%.
- The company is also considering divesting De Beers as global diamond demand weakens, with interest from the Botswana government in increasing its stake.
The sale of its Queensland Bowen Basin coal assets to London-based privately held mining company Dhilmar forms part of Anglo American’s strategy to divest non-core assets, cut debt and sharpen focus on commodities tied to the global energy transition.
The transaction includes $2.3 billion in upfront cash and as much as $1.58 billion in additional payments linked to coal prices.
Even so, shares in the miner fell 1.7% amid broader weakness across the mining sector driven by inflation fears, according to Reuters.
Chief Executive Officer Duncan Wanblad, a South African-born executive from Randfontein, said the transaction would complete the miner’s exit from steelmaking coal.
“Through this transaction, we will complete our exit from steelmaking coal,” he said.
The sale marks another step in the transformation of the miner, which rose to become one of Africa’s most influential mining groups before evolving into a London-headquartered multinational still listed on the Johannesburg Stock Exchange.
Strategic shift toward copper and transition minerals
In recent years, Anglo American has accelerated plans to divest non-core businesses as it restructures operations, reduces debt and focuses on higher-growth commodities tied to the global energy transition.
Copper is expected to benefit from rising demand linked to electric vehicles, renewable energy systems and electricity grid infrastructure as countries ramp up investments tied to the energy transition.
The restructuring drive intensified after Anglo fought off a $49 billion takeover attempt from rival BHP Group.
Meanwhile, in September 2025, the company unveiled plans for a $53 billion all-stock merger with Canadian miner Teck Resources that would create the world’s fifth-largest copper producer, behind industry giants such as BHP Group, Freeport-McMoRan, Codelco and Glencore.
Restructuring weighs on earnings
By the end of 2025, Anglo American reported a full-year net loss of $3.17 billion, compared with a $2.79 billion loss in 2024, driven largely by restructuring costs, the demerger of its platinum unit and writedowns linked to De Beers.
The company reported a 10% decline in annual copper production to 695,000 metric tonnes in 2025, placing output at the lower end of its guidance range.
Despite the weaker production, Anglo American remains among the world’s largest mining groups, with a market valuation of about $56 billion, according to market data.
De Beers divestment remains under review
At the same time, the South African-founded miner is also preparing to divest De Beers, one of the most historic assets in its portfolio, as weak global diamond demand continues to pressure the business.
The Botswana government, which owns a 15% stake in De Beers, has expressed interest in increasing its ownership of the company, while the miner plans to retain its stake in Kumba Iron Ore, signalling continued interest in selected South African-linked assets.
Peabody dispute remains unresolved
The latest $3.88 billion sale to Dhilmar follows the collapse of Anglo American’s earlier attempt to sell the same Australian coal assets to U.S.-based Peabody Energy for $3.78 billion after a mine fire derailed negotiations between the companies, according to Reuters.
The miner said it is pursuing arbitration proceedings against Peabody over the failed transaction.
Dhilmar, the new buyer, is a privately held mining group whose latest acquisition is the Eleonore gold mine in Canada, acquired from Newmont Corporation last year.
