Global mining company Anglo American has reached an agreement to sell its 33.3% stake in Jellinbah Group – a joint venture (JV) that holds a 70% ownership in the Jellinbah East and Lake Vermont steelmaking coal mines in Australia – to Zashvin for A$1.6bn ($1.1bn).
Zashvin, alongside Anglo American and Marubeni, holds an existing 33.3% share in Jellinbah Group.
The sale of Anglo American's interest does not affect the operational management of the mines as the company is not involved in their operations or the marketing of their production volumes.
The transaction is pending customary regulatory approvals and is due to be finalised in the second quarter of 2025.
Zashvin official James Xu said: “Jellinbah's success has been driven by robust partnerships. We are appreciative of Anglo American’s significant role in this journey and we value its dedication to making this transaction smooth and efficient.
“As a family that has been with Jellinbah since its inception, our increased investment not only reflects our confidence in Queensland’s coal industry but also our commitment to supporting the central Queensland community.”
During the year 2023, Anglo American's share in Jellinbah contributed significantly to the group's financials, adding $779m (£600.07m) in revenue and $373m to underlying earnings before interest, taxes, depreciation and amortisation (EBITDA).
For the first half of 2024, the Jellinbah interest continued to bolster Anglo American's financial performance, contributing $354m to group revenue and $153m to underlying EBITDA.
Anglo American chief executive Duncan Wanblad said: “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$1.6bn reflect the exceptional quality of the Jellinbah business.
“Our process to sell the rest of our steelmaking coal business – being the portfolio of steelmaking coal mines that we operate in Australia – is now at an advanced stage and we are on track to agree terms in the coming months.”
In July this year, Anglo American completed agreements to sell two royalties to Taurus Funds Management.
