Anglo American is exiting the coking coal mining business in Australia

British mining company Anglo American is selling its Australian coking coal mining business to private mining group Dhilmar Limited for $3.88 billion, according to SteelOrbis.

In doing so, the company has taken another step toward restructuring its portfolio ahead of its planned merger with Teck Resources.

The deal, which marks Anglo American’s complete exit from the steel coal segment, includes an upfront payment of $2.3 billion upon completion and an additional payment linked to the price of coking coal of up to $1.57 billion. The proceeds will be used to reduce the company’s net debt.

The transaction is expected to close by the first quarter of 2027. It is subject to customary antitrust and regulatory approvals, as well as pre-emptive rights agreements.

Together with the previously completed sale of its stake in the Jellinbah project last year for approximately $1 billion, this transaction will increase Anglo American’s total cash proceeds from its exit from the coking coal segment to $4.9 billion.

The previous buyer—Peabody—withdrew from the deal for the same asset portfolio in August of last year, citing an incident at the Moranbah North mine as the reason. Anglo American stated that it will continue arbitration proceedings against the company.

As a reminder, Anglo American reduced its production of premium iron ore by 2% year-over-year to 15.2 million tons in the first quarter of 2026.