Tag Archives: Duncan Wanblad

Anglo American to sell Queensland steelmaking coal assets to Peabody Energy

Anglo American has agreed to sell its portfolio of steelmaking coal mines that it operates in Australia to Peabody Energy for a cash consideration of up to $3.78 billion.

Peabody’s agreed cash consideration comprises an upfront cash consideration of $2.05 billion at completion; deferred cash consideration of $725 million; the potential for up to $550 million in a price-linked earnout; and contingent cash consideration of $450 million linked to the reopening of the Grosvenor mine.

The steelmaking coal portfolio under Anglo American consists primarily of an 88% interest in the Moranbah North joint venture; a 70% interest in the Capcoal joint venture; an 86.36% interest in the Roper Creek joint venture; a 51% interest in the Dawson joint venture, Dawson South joint venture, Dawson South Exploration venture.

The acquisition includes four metallurgical coal mines – Moranbah North, Grosvenor, Aquila and Capcoal – in Australia’s Bowen Basin, which is widely recognised for the world’s highest-quality steelmaking coal. Approximately 80% of the mines’ output is hard coking coal. The mines are complementary to Peabody’s existing Australian platform, the company says, including Centurion mine, and are expected to produce approximately 11.3 Mt of primarily hard coking coal in 2026. The acquired mines have an average mine life greater than 20 years with 306 Mt of marketable reserves and an additional 1,700 Mt of coal resources.

The acquisition is expected to transform Peabody’s metallurgical coal segment, increasing metallurgical coal production from an estimated 7.4 million tons in 2024 to an expected 21-22 Mt in 2026.

At the same time as Peabody and Anglo American announced this transaction, PT Delta Dunia Makmur Tbk, through its indirect subsidiary, PT Bukit Makmur Internasional (BUMA International), announced that it had entered into a binding agreement with Peabody subsidiary, Peabody SMC Pty. Ltd., to acquire that 51% interest in the Dawson Complex for $455 million, granting BUMA International a controlling interest in this mine.

Duncan Wanblad, Chief Executive of Anglo American, said: “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. Through focus, asset quality and outstanding growth options, Anglo American will offer a highly differentiated investment proposition supported by strong cash generation and the capabilities and longstanding relationship networks that can deliver our full potential. We are absolutely focused on delivering that strategy and unlocking the associated value as we streamline our cost structures and create a much simpler, more resilient and more agile business that will enable full market value recognition.

“All the transactions to deliver our portfolio transformation are well in train – the demerger of Anglo American Platinum is expected by mid-2025 and we have seen strong interest in our nickel business with the sale process well progressed. We expect De Beers to follow, recognising its unmatched industry and brand position and good progress in working with stakeholders to position the business for long term success as we work toward separation for value. We are well progressed with the delivery of $1 billion of cost savings and have detailed plans in place to deliver at least an additional $800 million in pre-tax recurring cost benefits on a run-rate basis from the end of 2025 as we progress the portfolio transformation.

“In steelmaking coal, through a combination of today’s announced transaction and our previously announced agreement to sell our interest in Jellinbah, we stand to unlock up to $4.9 billion of value, reflecting the high quality of the assets and adding to our balance sheet resilience. Peabody is a long-established and respected operator and we will work together and with our workforce, local communities, government, customers and partners to ensure a successful transition.”

Jim Grech, President and Chief Executive Officer of Peabody, added: “We’re pleased to acquire these world-class assets from Anglo American, a company that shares our strong values of safety, sustainability and social licence to operate. We look forward to integrating these assets, teaming up with their highly skilled workforce, and aligning with our new mine joint venture partners to create long-term value.”

The transaction is subject to a number of conditions, including customary competition and regulatory clearances, and pre-emption arrangements. The upfront cash consideration is subject to normal completion adjustments and completion is expected by the September quarter of 2025. Peabody has agreed to pay a $75 million deposit on signing which Anglo American is entitled to retain if the sale is terminated in certain limited circumstances.

ICMM offers up Taskforce on Nature-related Financial Disclosures guidance

ICMM says it welcomes the publication of the Taskforce on Nature-related Financial Disclosures (TNFD) Sector Guidance: Metals and Mining as an important step in catalysing a shift to an economy that supports nature. The guidance will enable mining and metals companies to identify, assess, manage and disclose nature related issues, it says.

ICMM is TNFD’s official piloting partner for the mining and metals sector, and has collaborated with 13 companies and cross-sector partners including NGOs BirdLife International and Fauna & Flora to develop TNFD’s sector guidance and reporting metrics. This sector-specific material supports mining and metals companies implementing TNFD’s wider framework in managing the nuances unique to the sector, as they work on integrating nature-related issues into their governance, strategic planning, risk management and disclosures.

With a recent report from Oxford University suggesting that shocks to the global economy related to biodiversity loss and ecosystem damage could cost upwards of $5 trillion, ICMM says it recognises the imperative of putting nature at the centre of decision making.

In January, ICMM’s 24 members, which represent around one-third of the global sector, committed to taking urgent action on nature, setting out a series of actions across their direct operations, value chains, wider landscapes and creating the conditions required to achieve systems transformation. These commitments are supported by transparent disclosures on performance outcomes, including publishing the results of nature-related impact and dependency assessments, and setting targets to address these. ICMM members are now focused on implementing these commitments.

This includes disclosing material nature-related impacts, dependencies, risks and opportunities for operations in priority locations by 2026 and the most material value chain categories or issues by 2030. TNFD’s new resources launched today will help to support this enhanced level of disclosure, ICMM says. Mining and metals companies have been reporting on their impacts on biodiversity for decades; this guidance goes much further to capture how their interactions with nature impacts businesses, it added.

Rohitesh Dhawan, President and CEO of ICMM, said: “We must acknowledge that mining activities have contributed to nature loss, but ICMM members are demonstrating how responsible mining can play a leading role in creating a nature positive future. I’m really proud that several ICMM member companies were among the early adopters of the TNFD framework, serve on the TNFD Forum and Taskforce, and have been one of the first in any sector to publish a TNFD assessment report.

“ICMM’s January commitments were the first collective sector approach to nature launched so far – one that we hope will provide learnings and guidance for other companies in the sector, and indeed other industries. TNFD’s new sector guidance and metrics can help companies to accelerate their implementation of these commitments, and their wider nature positive efforts.”

Duncan Wanblad, Chief Executive of Anglo American (TNFD Taskforce Member), said: “As a Taskforce Member and early adopter of TNFD, and as a member of ICMM, we were pleased to play an active role in the development of the Sector Guidance for Metals and Mining, representing another important milestone in the progression of TNFD and a significant contribution to the Global Biodiversity Framework’s Target 15. Our sector has an important synergistic association with nature and as a sector we have a great opportunity to be an enabler of positive change bringing together NGO partners, community and regional stakeholders and academic institutions to drive measurable actions on the ground.”

Libby Sandbrook, Director, Business & Nature Programme, Fauna & Flora: “Fauna & Flora is pleased to welcome the launch of the mining and metals guidance by TNFD. It will provide invaluable support to companies in the sector seeking to implement TNFD’s recommendations. We hope it will encourage more companies not only to disclose their nature-related risks and opportunities, but to take a positive approach to bending the curve on nature loss.”

Richard Grimmett, Head of Conservation, BirdLife International: “The new metals and mining guidance is an important further step towards the sector taking science-based action to improve the nature-related impact of the industry. The TNFD LEAP approach and disclosures provide a critical step in moving the industry towards a model which recognises and addresses its impact on nature. At BirdLife International, we look forward to seeing how the insights from the TNFD drive action and financial investment towards outcomes which benefit people and nature.”

Anglo American kicks off commercial ops at Quellaveco copper mine

Anglo American has announced the start of commercial copper operations at its Quellaveco project in Peru, following the successful testing of operations and final regulatory clearance.

Quellaveco is expected to produce 300,000 t/y of copper-equivalent volume on average over its first ten years.

The milestone follows unloading of first ore to the primary crusher in June and the production of first copper in July.

Duncan Wanblad, Chief Executive of Anglo American, said: “Our delivery of Quellaveco, a major new world-class copper mine, is testament to the incredible efforts of our workforce and our commitment to our stakeholders in Peru over many years. Quellaveco, alone, is expected to lift our total global output by 10% in copper-equivalent terms and take our total copper production close to 1 Mt/y. At a highly competitive operating cost, Quellaveco exemplifies the asset and return profile that is central to our portfolio quality and our ability to provide customers with a reliable and sustainable supply of future-enabling metals.”

Ruben Fernandes, CEO of Anglo American’s Base Metals business, added: “We designed Quellaveco as one of Anglo American’s and South America’s most technologically advanced mines, incorporating autonomous drilling and haulage fleets – a first in Peru – a remote operations centre, as well as a number of Anglo American’s digital and advanced processing technologies. Drawing its electricity supply entirely from renewables, Quellaveco is setting an example of a low emission mine producing a critical metal for decarbonising the global economy – copper. In Quellaveco, we can see FutureSmart Mining™ in action.”

Anglo American expects that Quellaveco will ramp up fully over the next 9-12 months. Following a thorough commissioning and testing period, and receipt of final regulatory clearance, production guidance for Quellaveco in 2022 is revised to 80,000-100,000 t of copper (previously 100,000-150,000 t) at a C1 unit cost of $1.50/lb, previously $1.35/Ib. Production guidance for Quellaveco in 2023 and 2024 is unchanged at 320,000-370,000 t of copper.