Anglo American Completes Sale of Minority Interest in Jellinbah for AU$1.6 Billion

Anglo American (LSE:AAL,OTCQX:AAUKF) said on Wednesday (January 29) that it has completed the sale of its 33.3 percent minority interest in the Jellinbah joint venture (JV) to Zashvin, one of its JV partners.

Jellinbah owns a 70 percent interest in the Jellinbah East and Lake Vermont steelmaking coal mines. The mines are located in the Tropic of Capricorn, near Bluff in Australia, and have been in operation since 1989.

The third partner in the JV is Marubeni (TSE:8002).

Anglo first announced plans to sell its interest in the JV this past November. The transaction is ahead of schedule, as it was originally expected to close during the second quarter of 2025.

The company has received AU$1.4 billion on top of an initial AU$228 million payment made by Zashvin.

“We are pleased to complete the first step in the divestment of our steelmaking coal portfolio, realizing US$1 billion of cash proceeds sooner than expected, further strengthening our balance sheet,” said Anglo's Duncan Wanblad.

“Jellinbah’s success since 1988 has been driven by the partnerships we have forged both locally and overseas,” James Xu of Zashvin is quoted as saying in Anglo's press release. “We pay tribute to Anglo American’s significant role in this journey and its dedication to making this historic transaction smooth and efficient.”

Also last November, Anglo said it had decided to sell its steelmaking coal portfolio to Peabody Energy (NYSE:BTU).

That transaction is worth US$3.78 million and forms part of Anglo’s portfolio transformation.

Anglo shared that it has already made progress toward completing the sale to Peabody.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.