According to the Zhongtong Finance and Economics APP, Anglo American plc (NGLOY.US) stated that with the accelerated pace of company restructuring, the company has agreed to sell its steel coal business to Peabody Energy Corp., with the transaction price potentially reaching $3.78 billion.

Anglo American plc is seeking to significantly simplify and reduce its business, a move announced earlier this year after successfully rejecting Bhp Group Ltd's $49 billion acquisition offer. Anglo American plc's stock price rose 2.9% in London trading.

The sale of the coal business is seen as the most direct first step in the entire process, which also includes exiting platinum and nickel businesses, as well as selling or spinning off De Beers. However, the process has been hindered by the explosion and fire at the Grovna mine, the largest of the company's five Australian mine sites.

Anglo American plc CEO Duncan Wanblad announced in a statement on Monday regarding the sale: "The divestment of the steel coal business is another important step towards implementing the global strategy set out in May, aimed at creating world-class copper, premium iron ore, and crop nutrient businesses."

Anglo American plc stated that it will receive a $2.05 billion prepayment and an additional $0.725 billion deferred payment from Peabody, along with a potential $0.55 billion (depending on coal prices) and $0.45 billion (depending on the reopening of Grovna mine).

Anglo American plc's operations span five coal mines in Queensland, producing a total of 16 million tons of coking coal in 2023. Over a dozen potential buyers are competing for these assets. Anglo American plc had previously sold a stake in another Australian coal mine for $1.05 billion.

For Peabody, this transaction will push it closer to a few dominant producers in the marine transportation and steel coal market. Currently, BHP Group Ltd Mitsubishi Alliance Joint Venture and Glencore are the largest producers.

This also marks a major turning point for Peabody. The company previously filed for bankruptcy protection in 2016, as one of the USA mining companies impacted by the low price of henry hub natural gas.

Since then, Peabody has been seeking to develop in the international coking coal market and has been trying to acquire other Australian assets in 2022.

Anglo-American Resources Group is currently working on divesting the majority of its stake in Anglo-American Resources Group Platinum Limited, with the divestment plan expected to be completed next year. The company also plans to exit the nickel mining business.

The sharp decline in the diamond market has made the sale or split of De Beers a complex matter. Anglo-American Resources Group prefers to wait for the market to recover, as the company believes that the selling price of De Beers should reflect its status as an iconic asset.