Anglo American's steelmaking coal portfolio consists mainly of an 88% interest in the Moranbah North and Grosvenor joint ventures. The business has been sold to Dhilmar for up to $3.88bn cash.
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Anglo American reported a solid production and cost performance from its operations and a favourable copper price in the six months to June 30.
The resources and agricultural nutients group, which is in the process of merging with Teck Resources, said earnings before interest, tax, depreciation, and amortisation increased by 35% to $4 billion during the period.
“We are unlocking the full potential of Anglo American – anchored in copper, premium iron ore, and crop nutrients – focusing on delivering material value for our shareholders while we prepare to complete our merger with Teck to create a global metals and minerals champion,” CEO Duncan Wanblad said in a statement.
Management initiatives undertaken as part of the group strategy during the six months include the sale of Steelmaking Coal for up to $3.875bn in cash. The sale of the diamond group De Beers is advancing, while integration planning for the merger with Teck is well advanced.
Net debt decreased to $8.2bn from $8.6bn at December 31, 2025. An interim dividend of $0.23 per share was declared, consistent with a 40% payout policy, well up from $0.07 per share at June 30, 2025.
Wanblad said they made good progress with their portfolio optimisation, agreeing to the sale of the Steelmaking Coal business to Dhilmar, including an upfront cash consideration of $2.3bn and the potential for additional payments linked to future coal prices.
Work continued through the European Commission's anti-trust approval process for the sale of the nickel business, while the sale process for De Beers is advancing alongside streamlining opportunities to improve its cost performance and reduce capital expenditure to minimise the impact from challenging diamond markets.
Wanblad said the good interim results arose from operational excellence, inflationary pressures, and the realisation of run-rate cost-out programme benefits delivered in 2025, in addition to management actions to reduce losses at De Beers.
“In Copper – the backbone of our forward portfolio – our performance, coupled with favourable prices, generated underlying EBITDA of $2.9bn with a margin of 60%,” he stated.
“This performance stands us in very good stead as we progress the merger to form Anglo Teck – a global metals and minerals champion. We continue to progress towards completion within our original September 2026 to March 2027 window, with anti-trust approval from China being the final outstanding regulatory milestone,” said Wanblad.
“Integration planning is well advanced, ensuring that we will be ready to begin to realise the material value and synergies we have identified from Anglo Teck once the transaction closes.
“On the back of our robust operational and financial performance in the first half of the year, we have every confidence we are making the right choices in terms of realising full value from our portfolio, both now and looking towards completion of our compelling combination with Teck.”
BUSINESS REPORT