4th Nov 2024 07:47
(Alliance News) - Anglo American PLC said on Monday it has agreed to sell its minority stake in Jellinbah Group Pty Ltd for AUD1.6 billion, or about USD1.1 billion, or around ZAR19.23 billion.
Jellinbah is a joint venture that owns a 70% interest in the Jellinbah East and Lake Vermont steelmaking coal mines in Australia.
Anglo American is selling its 33.3% interest in Jellinbah to Zashvin Pty Ltd, an existing 33.3% shareholder in Jellinbah, alongside Anglo American and Marubeni.
Anglo American does not operate the Jellinbah mines, nor does it market any of the production volumes from Jellinbah.
The sale is subject to regulatory approvals and is expected to complete in the second quarter of 2025, Anglo American said.
Anglo American Chief Executive Officer Duncan Wanblad said the cash proceeds of AUD1.6 billion reflect the "exceptional" quality of the Jellinbah business.
Wanblad incidated that the process to sell the rest of its steelmaking coal business is now at an advanced stage and it is on track to agree terms in the coming months.
Anglo American intends to divest the Grosvenor steelmaking coal mine in Queensland, Australia, which saw its production suspended following underground fire late in June.
The sale of coal unit forms part of Anglo American's plan announced in May to restructure its business. Anglo American also seeks to "demerge" Anglo American Platinum Ltd and "divest" or "demerge" De Beers as part of its new strategy.
"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," Wanblad said.
Shares in Anglo American flat at 2,396.00 pence on Monday morning in London, while Johannesburg shares were up 0.7% to ZAR553.27.
By Artwell Dlamini, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.