Anglo American is pulling out of Queensland’s Jellinbah East and Lake Vermont coal mines through a $1.6 billion deal to sell its interest in Jellinbah Group.

Buyer Zashvin is an existing shareholder in the Jellinbah joint venture, holding an equal 33.3 per cent stake alongside Anglo American and Marubeni.

The sale is subject to regulatory approvals and is expected to complete in the second quarter of 2025.

Related: Anglo nears pointy end of coal assets sale process

 “We are delighted to have agreed terms with our JV partner, Zashvin, for the sale of our minority interest in Jellinbah,” Anglo American chief executive Duncan Wanblad said.

“The cash proceeds of $1.6 billion 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.”

Related: Semi-autonomous milestone at Lake Vermont

The Jellinbah Group joint venture owns a 70 per cent interest in the Jellinbah East and Lake Vermont steelmaking coal mines.

Jellinbah East is an open-cut mine located near Bluff in Central Queensland, while the Lake Vermont open-cut mine is located near Dysart.

James Xu of Zashvin said the company’s increased investment in Jellinbah Group reflected its confidence in Queensland’s coal industry and commitment to supporting the Central Queensland community. 

In the first half of 2024, Anglo American’s 33.3 per cent interest in Jellinbah contributed $US354 million (about $537 million) to group revenue and $US153 million (about $232 million) to underlying EBITDA.

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