Anglo American said on Monday (Tuesday AEDT) it will sell its remaining steelmaking coal business in Australia, in a deal worth US$3.8 billion (A$5.84 billion) to Peabody Energy.
Following the $49 billion takeover bid in May by BHP, Anglo has been working to restructure its business and focus on copper after already announcing the sale of its interest in Jellinbah for approximately $1.1 billion.
Anglo has already refused three attempts by BHP to buy the company and the news comes just days before a six-month freeze on another bid by BHP expires on Friday.
Chief executive Duncan Wanblad said: “The sale of our steelmaking coal business is another important step towards delivering the strategy that we set out in May to create a world class copper, premium iron ore and crop nutrients business.”
“We are well progressed with the delivery of $1 billion of cost savings and have detailed plans in place to deliver at least an additional US$800 million in pre-tax recurring cost benefits on a run-rate basis from the end of 2025 as we progress the portfolio transformation”, Wanbald said in a statement.
The Steelmaking Coal Portfolio includes an 88.0% interest in the Moranbah North joint venture; a 70% interest in the Capcoal joint venture; an 86.36% interest in the Roper Creek joint venture; a 51.0% interest in the Dawson joint venture, Dawson South joint venture, Dawson South Exploration joint venture and the Theodore South joint venture; and a 50.0% interest in the Moranbah South joint venture.
The London-listed miner's stock closed up 1.36%, while Peabody fell 5.18% on the news.
