Anglo American has agreed to sell its Australian steelmaking coal mines to Dhilmar for up to $3.88 billion as part of a portfolio simplification ahead of its merger with Teck Resources.

The sale aligns with a broader pivot to core assets, supporting Anglo American and Teck Resources' plan to create a dominant global copper producer.

Anglo American says Moranbah North incident did not constitute a material adverse change warranting termination with Peabody, and arbitration over the deal is ongoing.

Dhilmar has been expanding its portfolio with acquisitions such as the Eleonore gold mine in Canada from Newmont for about $795 million, signaling a shift toward strategic metals.

The buyer is described as a Britain-based miner, with the name not disclosed in the excerpt.

Dhilmar Ltd is an Indonesian-backed UK-registered newcomer to Australia with a relatively small holdings footprint, serving as the buyer.

This deal follows a failed previous sale to Peabody Energy, which withdrew over a claimed material adverse change after a Moranbah North fire; Anglo American contends Peabody’s termination was not due to a material adverse change and is pursuing arbitration.

The earlier agreement with Peabody collapsed in 2025 after a major accident at Moranbah North and related deposits arbitration.

The renewed focus on copper reflects its critical role for infrastructure and power grids, with IEA projecting demand outstripping current mine capacity by 2030 if new projects lag.

Anglo American’s shares fell in Johannesburg after the announcement, though the stock has risen notably over the past six months.

The article is reported by Najiyya Budaly on May 18, 2026, at 10:55 AM BST.

The transaction is subject to customary conditions, including antitrust clearances and pre-emption arrangements.