May 18, 2026 - Anglo American has announced that it has agreed to sell its portfolio of steelmaking coal mines in Australia (“Steelmaking Coal Portfolio”) to Dhilmar Limited (“Dhilmar”) for a cash consideration of up to US$3.875 billion (“the Transaction”).

The agreed cash consideration of up to US$3.875 billion comprises an upfront cash consideration of US$2.3 billion payable by Dhilmar at completion and a price-linked earnout1 of up to US$1.575 billion. Anglo American will use the cash proceeds to reduce net debt.

Duncan Wanblad, CEO of Anglo American, said: “Our agreement for Dhilmar to acquire our steelmaking coal business in Australia is testament to the high quality of these assets and our people. Dhilmar’s leadership brings considerable experience of operating major mining assets, including in steelmaking coal, in Southeast Asia and Canada. We will work together with the Dhilmar team and with our workforce, local communities, government, customers, and partners to ensure a successful transition.

“This agreement represents another major step in the simplification of our portfolio ahead of completing our merger with Teck. Through this transaction, we will complete our exit from steelmaking coal, delivering aggregate cash proceeds of up to US$4.9 billion, given the prior completion of the sale of our interest in the Jellinbah mine for approximately US$1 billion.”

The Transaction is subject to a number of conditions, including customary competition and regulatory clearances, and pre-emption arrangements. The upfront cash consideration is subject to normal completion adjustments and completion is expected by the first quarter of 2027.

Anglo American’s Steelmaking Coal Portfolio consists primarily of an 88.0% interest in the Moranbah North and Grosvenor joint ventures; a 70% interest in the Capcoal joint venture; an 86.36% interest in the Roper Creek joint venture; a 51.0% interest in the Dawson joint venture, Dawson South joint venture, Dawson South Exploration joint venture and the Theodore South joint venture; and a 50.0% interest in the Moranbah South joint venture.

In parallel with the Transaction, Anglo American continues to pursue the arbitration with Peabody in relation to its November 2024 agreement to acquire the Steelmaking Coal Portfolio. Anglo American remains confident that the incident at Moranbah North relied upon by Peabody in support of its purported termination of its agreement did not constitute a Material Adverse Change.

Footnotes:

1 The price-linked earnout comprises uncapped annual payments (calculated quarterly) of up to US$1.575 billion in aggregate, applicable for five years starting from the first day of the quarter following the transaction completion date. The quarterly payment will be calculated as 50% of incremental revenue post royalties from equity coal production above agreed metallurgical and thermal coal index prices. The precise trigger prices above which payments are made differ by product, but broadly align to PLV HCC Benchmark prices of US$259/t inflated annually by US CPI from completion.