London, May 18, 2026, 09:02 (BST)
Anglo American dropped in early London moves Monday after it said it’s selling its Australian steelmaking coal arm to Dhilmar for as much as $3.875 billion. The deal, which helps with its planned Teck Resources merger, still leaves some payout tied to coal prices going forward. Anglo was last at 3,739.5 pence, off 2.44%, according to market data.
Anglo is pushing to get its portfolio in shape before merging with Teck, a deal aimed at boosting its focus on copper. The metal is a priority for major miners as it’s key in power grids, EVs and data centres.
Anglo said Dhilmar is set to pay $2.3 billion upfront and up to $1.575 billion more based on future coal prices. CEO Duncan Wanblad called it a “major step” to simplify the portfolio, adding the deal would “complete our exit” from steelmaking coal. Anglo American
Shares declined in a soft market. The STOXX 600 dropped 0.7% to 602.52. Ongoing inflation concerns and geopolitics weighed on stocks, so the fall wasn’t all about the coal sale.
The deal puts a sale back on the table after the last attempt failed. Peabody Energy had pulled out of a $3.78 billion deal for these Australian coking-coal assets last year, following a fire at Moranbah North. Anglo is still pushing for arbitration, saying Peabody was wrong to walk away. Peabody cited the material adverse change clause to exit, a contract term that lets buyers back out after a major event hits the business.
Teck is taking the main focus for investors now, though Peabody is still in play. Anglo and Teck say merging would mean a new Anglo Teck, based in Canada. The combined group would be a major critical-minerals player and among the top five copper producers, with copper making up over 70% of its business.
Anglo flagged a new issue Monday tied to copper. The miner said a Chilean environmental court appeared to have thrown out a 2021 permit for a Collahuasi project that covers a nearly finished desalination plant. Anglo said it doesn’t see an immediate impact on output for now.
The path ahead is not clear of risks. The coal deal has to clear regulators and go through pre-emption steps, plus the earnout relies on coal prices holding up. Delays at Collahuasi or softer coal prices could slow things down, and if the Teck transaction runs into regulatory hurdles, investors may doubt the timeline.
Anglo has now set a cash price on another asset it aims to spin out. The market’s first response was lukewarm. Investors sold the stock, are waiting to see the deal close, and still tracking copper.
