Anglo American (LON: AAL) saw its stock price rise more than 1% Monday after the announcement of an agreement to sell its 33.3% minority interest in Jellinbah Group Pty Ltd to Zashvin Pty Limited for A$1.6 billion (approximately US$1.1 billion).
Jellinbah is a joint venture that owns a 70% interest in the high-quality Jellinbah East and Lake Vermont steelmaking coal mines in Australia. The sale is expected to close in the second quarter of 2025, subject to customary regulatory approvals.
Anglo American CEO Duncan Wanblad stated: “We are delighted to have agreed terms with our JV partner, Zashvin, for the sale of our minority interest in Jellinbah. The cash proceeds of A$1.6 billion reflect the exceptional quality of the Jellinbah business.
Wanblad further noted the company's ongoing efforts to simplify its portfolio, focusing on its core copper, premium iron ore, and crop nutrients businesses, saying the company's process to sell the rest of its steelmaking coal business is now at an advanced stage, and they are on track to agree terms in the coming months.
“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,” he added.
James Xu of Zashvin commented: “Jellinbah's success has been driven by robust partnerships. We're appreciative of Anglo American's significant role in this journey and we value its dedication to making this transaction smooth and efficient.”
Anglo American has been actively divesting non-core assets and pursuing growth initiatives in its core businesses.
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