Anglo American Hires Banks to Sell Steelmaking Coal Assets Valued at Up to $5 Billion

Anglo American has hired three banks – Goldman Sachs, Morgan Stanley, and Centerview Partners – to help with the sale of its steelmaking coal assets in Australia. Analysts value these assets at up to $5 billion as part of a broader restructuring effort by the company.

Anglo’s CEO, Duncan Wanblad, had announced in May that the company would soon begin the sale process for its five operating coal mines, development projects, and joint ventures in Australia. This is part of Anglo’s plan to divest less profitable assets and focus on expanding its copper output, after a failed attempt by rival BHP to take over the company.

However, the sale process has been impacted by a fire that ignited at Anglo’s Grosvenor mine in Queensland on June 29. The assessment of the damage and the mine’s reopening is likely to take several months, which has likely affected the timing and valuation of the asset sale.

According to analysts, the Grosvenor mine accounts for about 30% of the $4.5 billion value attributed to Anglo’s steelmaking coal business by Jefferies. Metallurgical coal prices have also been volatile, hitting a record $635 per ton in March 2022 due to concerns over global supplies following Russia’s invasion of Ukraine, but have since fallen to around $250 per ton.

Anglo’s broader restructuring plan also includes the demerger of its South African platinum assets, the divestment or closure of its nickel assets, and the demerger or sale of its diamond unit, De Beers. The company aims to have this restructuring well advanced by the end of 2025.

Anglo American Hires Banks to Sell Steelmaking Coal Assets Valued at Up to $5 Billion
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