Anglo American has finalized the sale of its stake in an Australian steelmaking coal venture for £850 million, marking a significant strategic shift aimed at protecting the company from potential acquisition attempts.

The FTSE 100 mining giant has divested its 33 percent share in Jellinbah Group, a joint venture that holds a 70 percent stake in the Jellinbah East and Lake Vermont steelmaking coal mines located in Queensland.

This share has been acquired by Zashvin, an investment firm owned by Brisbane billionaire Sam Chong. Zashvin was already a shareholder in Jellinbah Group, holding a 33.3 percent stake alongside Anglo American and the Japanese trading conglomerate Marubeni.

Duncan Wanblad, the CEO of Anglo American, commented that the transaction highlights the “exceptional quality of the Jellinbah business,” which recorded revenues of $354 million in the first half of 2024, alongside underlying earnings before interest, tax, depreciation, and amortization totaling $153 million. Following the announcement, Anglo American’s stock rose by 23p, or 0.96 percent, reaching £24.19 by late afternoon.

Wanblad also noted, “Our strategy to sell the remaining portion of our steelmaking coal assets — specifically the portfolio of Australian steelmaking coal mines we operate — is progressing well and we expect to finalize agreements in the upcoming months.”

He further stated, “We are actively simplifying Anglo American’s operations to forge an attractive and differentiated investment proposition, focusing on our premier copper, high-grade iron ore, and crop nutrient assets — all of which are essential for future sustainability.”

Anglo American’s restructuring efforts come in the wake of a failed £39 billion takeover bid from BHP earlier this year. The company also intends to sell its De Beers diamond division and its nickel and platinum holdings. Recently, it began reducing its stake in the platinum business, dropping from 78.6 percent to 73.7 percent.

Analysts at RBC Capital Markets predict that Anglo American’s stock price will strengthen as the company streamlines its operations, aiming for a business model with 60 percent exposure to copper, a mineral increasingly in demand for manufacturing infrastructure required for a transition to low-carbon energy systems, including electric vehicles and renewable energy tools.

As mining companies seek to bolster their copper assets, many are divesting coal interests. Anglo American, in particular, has attracted interest due to its copper mines in Peru and Chile, which have the capacity to produce around 760,000 tonnes of copper annually.

Prior to this sale, BHP divested its coking coal operations, Blackwater and Daunia, for up to $4.1 billion last April, while Canadian mining company Teck Resources transferred its steelmaking coal operations to Glencore for $6.9 billion last year.

James Xu from Zashvin remarked, “The success of Jellinbah is a product of strong partnerships. We appreciate Anglo American’s crucial role in this process and value its commitment to facilitating a smooth transaction. Our increased investment signifies not only our confidence in Queensland’s coal sector but also our dedication to supporting the central Queensland community.”

Anglo American’s announcement follows a recent decline in its share values when BHP’s chairman sought to quell rumors of a renewed acquisition bid. Ken MacKenzie indicated at BHP’s annual meeting that while there was a perceived opportunity for a unique collaboration, the executive team had moved on. This prompted a decrease in Anglo American’s shares by 97.5p, or 3.9 percent, to £23.85. However, RBC analysts noted that a new proposal from BHP remains a possibility, as the mining giant is required to refrain from pursuing Anglo American for a minimum of six months but will be eligible to revisit a bid starting November 29.