Anglo American plc announced on Monday it reached an agreement to sell its portfolio of Australian steelmaking coal mines to Peabody Energy for $3.8 billion.

The deal consists of an upfront cash consideration of $2.05 billion at completion, a deferred cash consideration of $725 million, the potential for up to $550 million in a price-linked earnout, and a contingent cash consideration of $450 million linked to the reopening of the Grosvenor mine. "The sale of our steelmaking coal business is another important step towards delivering the strategy that we set out in May to create a world class copper, premium iron ore and crop nutrients business," Anglo American CEO Duncan Wanblad stated.

The transaction is subject to regulatory approval and is expected to close in the third quarter of 2025.