Anglo American Concludes A$1.6 Billion Stake Sale in Jellinbah Group
Anglo American plc has successfully completed the sale of its 33.3% minority interest in Jellinbah Group Pty Ltd, a significant joint venture in the Australian steelmaking coal sector, to Zashvin Pty Ltd for A$1.6 billion. This marks a pivotal moment in Anglo American’s strategic shift towards focusing on higher-margin businesses, such as copper, iron ore, and crop nutrients, while reducing its exposure to the coal industry.
Details of the Transaction
The agreement, first announced in November 2024, was initially expected to close in the second quarter of 2025. However, Anglo American expedited the process, receiving A$1.4 billion in addition to A$228 million already received. This brings the total proceeds to A$1.6 billion (approximately US$1.0 billion). The deal involved the sale of Anglo American’s stake in Jellinbah Group, which owns a 70% interest in two major steelmaking coal mines in Australia: Jellinbah East and Lake Vermont.
Zashvin, a 33.33% shareholder in Jellinbah alongside Anglo American and Marubeni, has now become the sole partner in the joint venture. Notably, Anglo American was not involved in the operation of the mines or the marketing of the coal produced, so the transition of ownership to Zashvin is expected to proceed smoothly.
Strategic Move for Anglo American
This sale is part of Anglo American’s broader strategy to divest its steelmaking coal assets, a business that is increasingly being phased out in favor of more sustainable and profitable ventures. As Duncan Wanblad, the CEO of Anglo American, highlighted, the sale allows the company to realize US$1 billion in cash proceeds earlier than expected, providing a boost to its balance sheet. The funds will be used to further strengthen the company’s financial position as it progresses towards its goal of simplifying its portfolio.
Anglo American is in the process of completing the sale of the remainder of its steelmaking coal portfolio to Peabody, with an additional potential cash consideration of up to US$3.8 billion. This move reflects the company’s commitment to focusing on its higher-margin businesses, which include world-class copper, premium iron ore, and crop nutrients.
The company’s new strategy is designed to create a more resilient and cash-generative business model that can weather market fluctuations. The emphasis on copper, in particular, comes at a time when global demand for the metal is expected to rise significantly due to its central role in clean energy technologies, electric vehicles, and digital infrastructure.
Zashvin’s Role and Future Commitment
Zashvin’s acquisition of Anglo American’s stake in Jellinbah is a significant step for the Queensland-based company, which is now the sole operator of the joint venture. James Xu of Zashvin expressed confidence in the future of Queensland’s coal industry, noting that the company’s increased investment demonstrates its commitment to the region’s coal sector and workforce. Zashvin, a proudly family-owned business, has emphasized the importance of maintaining strong local partnerships and contributing to the long-term success of the coal industry in central Queensland.
Jellinbah Group has been a key player in the coal mining industry in Queensland since 1988, and its success has been driven by strategic partnerships both locally and internationally. With the sale of Anglo American’s stake, Zashvin will continue to play a central role in the operation of the Jellinbah East and Lake Vermont mines, which are critical to the production of high-quality steelmaking coal.
Anglo American’s Shift Towards Higher Growth Sectors
The divestment of the steelmaking coal assets is part of a broader strategy by Anglo American to focus on sectors with higher growth potential and profitability. The company has been redirecting its resources towards copper, which it sees as a key growth area over the next decade. As part of this strategy, Anglo American is aiming to increase its annual copper production to more than one million metric tons in the coming years.
In addition to copper, Anglo American is also positioning itself to benefit from the growing demand for premium iron ore and crop nutrients, which are expected to see sustained demand in the years ahead. This shift in focus will allow the company to enhance its margins, reduce its carbon footprint, and better align with global sustainability trends.
The company’s commitment to sustainability is evident in its decision to gradually reduce its exposure to coal, a sector that faces increasing pressure due to the transition towards cleaner energy. By divesting from steelmaking coal and focusing on more sustainable resources, Anglo American aims to position itself as a leading player in industries that will drive the global economy forward.
Conclusion of the Transaction
The sale of Anglo American’s minority stake in Jellinbah Group marks a significant milestone in the company’s ongoing portfolio reshaping. The A$1.6 billion transaction strengthens the company’s balance sheet and accelerates its transition to a business model focused on copper, premium iron ore, and crop nutrients. With the proceeds from this sale, Anglo American is poised to invest in higher-margin, growth-oriented sectors that align with global sustainability and market trends.
For Zashvin, the acquisition represents an opportunity to consolidate its position as a leading player in the Queensland coal sector, with continued investment and commitment to the region’s workforce and coal production capabilities.
