Diversified mining giant Anglo American announced on Monday the sale of its Australian steelmaking coal mines to Peabody, a US-based coal producer, for $3.8-billion. The move is part of the Johannesburg- and London-listed group's ongoing restructuring efforts, focusing on future-facing commodities.

The deal follows the recent sale of Anglo American's 33.3% stake in the joint venture (JV) that owns the Jellinbah and Lake Vermont coal mines in Australia for $1.1-billion, bringing the total value of the company’s coal divestments to up to $4.9-billion.

These divestitures align with a broader strategy set out by CEO Duncan Wanblad in May, at the time fending off a potential takeover by larger rival BHP. Under the plan, Anglo American is focusing on growth areas such as copper, premium iron-ore, and crop nutrients, while phasing out assets in coal, platinum, nickel, and diamonds.

Wanblad said that the Anglo American Platinum demerger was expected by mid-2025.

He also shared that the company had received strong interest in its nickel business, with the sale process “well progressed.”

“We expect De Beers to follow, recognising its unmatched industry and brand position and good progress in working with stakeholders to position the business for long-term success as we work towards separation for value.”

In addition, Wanblad noted that the company was on track to deliver $1-billion in cost savings, with plans to achieve at least $800-million in recurring pre-tax cost benefits by the end of 2025 as part of its ongoing portfolio transformation.

Commenting on the sale of Anglo American's Australian coal portfolio, Wanblad expressed confidence in Peabody’s role in the sector: “Peabody is a long-established and respected operator,” he said.

The transaction includes a cash payment of up to $3.775-billion, which comprises an upfront cash consideration of $2.05-billion upon completion, $725-million in deferred cash, a potential $550-million price-linked earnout, and $450-million in contingent cash linked to the reopening of the Grosvenor mine.

The steelmaking coal portfolio consists primarily of an 88.0% interest in the Moranbah North JV; a 70% interest in the Capcoal JV; an 86.36% interest in the Roper Creek JV; a 51.0% interest in the Dawson JV, Dawson South JV, Dawson South Exploration JV and the Theodore South JV; and a 50.0% interest in the Moranbah South JV.

“We’re pleased to acquire these world-class assets from Anglo American, a company that shares our strong values of safety, sustainability and social licence to operate. We look forward to integrating these assets, teaming up with their highly skilled workforce, and aligning with our new mine JV partners to create long-term value," said Peabody CEO Jim Grech.

The sales would end Anglo American's active mining operations in Australia but the company will continue exploration activities in the country.