Coal stakes are central to Anglo American’s ambitious overhaul, as the company has agreed to divest its 33.3% interest in Jellinbah Group, an Australian coal mining venture, for A$1.6 billion (US$1.1 billion). Anglo American‘s decision, part of CEO Duncan Wanblad’s aggressive strategy to streamline the mining giant, comes as it faces renewed takeover pressure from rival BHP.
The London-listed company will offload its stake to Zashvin, a prominent Australian power generation firm, which already holds a third of the venture alongside Japan’s Marubeni Corporation. The sale, expected to close by Q2 2025, marks a significant milestone in Anglo’s broader restructuring efforts.
Reshaping the Business Model
Central to Wanblad’s plan is a radical shift toward copper and iron ore production, moving away from Anglo’s historical focus on diamonds, coal, nickel, and platinum. This reconfiguration became a top priority after BHP’s £49 billion acquisition proposal in May, which Anglo decisively rejected. The rejection, however, has intensified the pressure to prove that Wanblad’s transformation strategy can deliver shareholder value.
At the Joburg Indaba mining conference in October, Wanblad defended his strategy, stating, “We are making excellent progress in our simplification.” He emphasized that the restructuring would establish Anglo as a “very viable, standalone company,” seeking to ease investor concerns about potential vulnerabilities.
Expanding Copper Footprint
Anglo American’s strategic pivot aims to make copper the backbone of its operations, with expectations that the commodity will generate around 60% of the company’s revenue. The firm has already made progress, selling a 5% stake in its platinum subsidiary, Anglo American Platinum, in September. This move reduced its holding from 78.6% to 73.7%, underlining Wanblad’s determination to recalibrate the portfolio.
Additionally, plans are in place to divest the remainder of its metallurgical coal business in Australia. Wanblad expressed optimism about concluding negotiations “in the coming months,” reiterating his commitment to reducing Anglo’s exposure to carbon-intensive assets.
BHP’s Persistent Interest
Despite BHP CEO Mike Henry’s assertion that the world’s largest mining company has “moved on” from its failed bid, market speculation continues. The UK’s takeover regulations allow BHP to make a renewed approach as early as November 29, heightening investor anticipation. BHP chair Ken MacKenzie downplayed the idea of a renewed bid during the company’s annual meeting in October, referring to the rejected merger as a missed but bygone opportunity.
However, BHP later issued a clarifying statement, indicating that the UK Takeover Panel would not interpret MacKenzie’s remarks as a binding commitment to avoid a future offer. This ambiguity keeps the possibility of a new bid alive, despite BHP’s public claims to the contrary.
Adding fuel to the rumors, Henry and BHP’s Chief Development Officer Catherine Raw have reportedly engaged with South African government officials in recent weeks. According to a financial insider quoted by the Financial Times, “The consensus view is that they are coming back, if they can figure it out.”
High Stakes for Wanblad
Wanblad faces immense pressure to produce tangible results from Anglo’s restructuring before BHP can potentially reassert its interest. Some analysts caution that a copper-centric strategy could expose the company to price volatility and heightened takeover risk. However, others see the plan as a necessary evolution in response to shifting market dynamics and growing investor demands for greener operations.
The coming months will be crucial for Anglo American as it strives to prove that its future lies not in coal and diamonds but as a leaner, copper-driven enterprise. Investors will be watching closely to see if Wanblad’s vision can withstand BHP’s persistence and deliver sustainable value in the changing mining landscape.
