The Brief:
Anglo American sells its Australian steelmaking coal portfolio to UK-registered Dhilmar Limited for up to US$3.875bn (A$5.4bn).
MinterEllison and Latham & Watkins advised Anglo on the deal.
Anglo American’s Australian coal business has had a rough run.
A planned sale to Peabody Energy fell apart last year after a fire at the Moranbah North underground mine. Peabody walked, citing a material adverse condition. Anglo disagreed — and the two are now headed for arbitration.
That left Anglo back at square one. Until now.
Dhilmar Limited, a privately held, UK-registered company incorporated in 2024, has agreed to buy Anglo’s entire Australian steelmaking coal portfolio for up to US$3.875bn.
The deal
The assets include stakes in Queensland’s Grosvenor, Moranbah North, Dawson, Aquila and Capcoal mines.
The price breaks down into US$2.3bn (A$3.2bn) upfront at completion, with a price-linked earn-out of up to US$1.575bn (A$2.2bn) payable over five years — but only if benchmark metallurgical coal prices clear US$259 (A$362) a tonne. Both the headline price and the upfront consideration beat what Peabody had pledged.
Dhilmar is a little-known buyer with no Australian mining track record. It set up three local subsidiaries earlier this month and named directors with ties to ASX-listed mining services group Macmahon Holdings. Completion is expected by the first quarter of 2027.
The coal sale is a key piece of Anglo’s plan to shed non-core assets and cut debt ahead of its merger with Teck Resources — a tie-up that will create a copper-focused mining heavyweight. Anglo has already exited nickel and platinum. The De Beers diamond business is the last unit still to be divested.
This agreement represents another major step in the simplification of our portfolio ahead of completing our merger with Teck.
Who’s acting
MinterEllison advised Anglo American, working alongside Latham & Watkins.
The team was led by partners Jordan Phillips and Simon Scott (both Energy, Resources & Projects), with Josephine Vidler (Senior Associate), Tia Shadford (Associate) and Harvey Nihill (Lawyer). Tax partner Tim Lynch and associate Charlie Richardson also advised.
The mandate is the latest chapter in a relationship stretching back to the early 1990s, when MinterEllison first acted for Shell — the previous owner of Anglo’s Australian business. The firm has been across Anglo’s full steelmaking coal exit, including the Jellinbah stake sale and the earlier Peabody deal that ultimately fell over.
Source: MinterEllison, Latham & Watkins, Anglo American