Anglo American has reached an agreement to sell its 33.3 per cent minority interest in Jellinbah Group to Zashvin for $1.6 billion.
The transaction will see Zashvin, an existing 33.3 per cent shareholder in Jellinbah, increase its stake in the joint venture (JV) that owns a 70 per cent interest in the Jellinbah East and Lake Vermont steelmaking coal mines in Australia.
The sale, subject to regulatory approvals, is anticipated to be completed by the second quarter of 2025.
“We are delighted to have agreed terms with our JV partner Zashvin for the sale of our minority interest in Jellinbah,” Anglo American chief executive Duncan Wanbland said.
“The cash proceeds of $1.6 billion reflect the exceptional quality of the Jellinbah business.
“Our process to sell the rest of our steelmaking coal business is now at an advanced stage and we are on track to agree terms in the coming months.”
Zashvin’s James Xu thanked Anglo American for its role in Jellinbah’s development and highlighted confidence in Queensland’s coal sector.
“Jellinbah’s success has been driven by robust partnerships,” Xu said. “We’re appreciative of Anglo American’s significant role in this journey and we value its dedication to making this transaction smooth and efficient.
“As a family that’s been with Jellinbah since its inception, our increased investment not only reflects our confidence in Queensland’s coal industry but also our commitment to supporting the central Queensland community.”
Anglo American is making a strategic shift toward higher-margin assets.
“We are making excellent progress with our simplification of Anglo American to create an exciting and differentiated investment proposition focused on our world-class copper, premium iron ore and crop nutrients assets – all future-enabling products,” Wanbland said.
“This highly cash generative and much higher margin portfolio will offer greater resilience through cycles and the benefit of significant high quality and well sequenced growth options, including a clear path to increase annual copper production to more than one million tonnes by the early 2030s.”
In 2023, Anglo American’s 33.3 per cent interest in Jellinbah contributed $US779 million to revenue and $US373 million in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA).
The first half of 2024 saw revenue contributions of $US354 million and $US153 million to underlying EBITDA.
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