Anglo American sells central Queensland coal mines to Dhilmar in deal worth up to $5.43bn

Anglo American says it has sold its five steelmaking coal mines in central Queensland to UK miner Dhilmar Ltd for up to $5.43bn. The transaction covers interests in Moranbah North and Grosvenor mines, as well as Capcoal, Roper Creek, Dawson South and Theodore South joint ventures. It also includes the town of Middlemount, where the company provides housing and community facilities.

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The company said the sale is subject to conditions including competition and regulatory approvals. Anglo American chief executive Duncan Wanblad said Dhilmar had experience operating major mining assets, including steelmaking coal operations in South East Asia and Canada. He said the company would work with Dhilmar, its workforce, local communities, government, customers and partners to ensure a successful transition.

The deal follows the collapse of an earlier sale to US miner Peabody Energy. Peabody pulled out using a material adverse change clause after a fire at the Moranbah North underground mine. That earlier transaction was also conditional on the neighbouring Grosvenor mine returning to production after an underground explosion.

Anglo said it remained in arbitration with Peabody and had argued that an ignition event at Moranbah North did not amount to a material adverse change. The sale is significant because the mines are part of central Queensland's steelmaking coal sector, which supplies material used in steel production. The assets are also tied to local employment and services, including housing and community infrastructure in Middlemount.

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Any change in ownership can therefore affect workers, nearby communities and customers, as well as the timing of future production and investment decisions. Anglo American has been reshaping its portfolio and the Queensland assets have been at the centre of that process. The earlier failed sale to Peabody showed how operational incidents can complicate large mining transactions, especially when approvals and production conditions are still unresolved.

The current agreement with Dhilmar suggests Anglo is still seeking to complete a divestment, but with a different buyer and under fresh terms. What remains unclear is how long regulatory approval will take and whether any further conditions could delay completion. It is also not yet clear how Dhilmar plans to manage the mines, the workforce and the community assets included in the sale.

The arbitration with Peabody also remains unresolved, leaving open the possibility of further legal and financial consequences.

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