Billionaire Sam Chong forks out $1.6bn in Anglo American coal mine deal

Queensland mining magnate Sam Chong will splash out $1.6bn on a stake in two Queensland coal mines after striking a deal with resources giant Anglo American.

Sam Chong will shell out $1.6bn for a major stake in two Queensland coal mines, including Lake Vermont.

Brisbane billionaire Sam Chong will shell out $1.6bn for a major stake in two Queensland coal mines after agreeing to a deal with resources giant Anglo American.

Malaysian-born Mr Chong, who has worked in the Queensland mining sector for several decades, owns Jellinbah with subsidiaries of Japanese group Marubeni and Anglo.

The new deal will see the mining magnate scoop up Anglo’s 33.3 per cent stake in Jellinbah Group, which owns a 70 per cent interest in the Jellinbah East and Lake Vermont metallurgical coal mines in Queensland.

Mr Chong’s private investment vehicle Zashvin already owns a one-third stake in Jellinbah and in 2024 shared in one of the highest dividends paid among private firms, with $714m paid out by Jellinbah Group.

“As a family that’s been with Jellinbah since its inception, our increased investment not only reflects our confidence in Queensland’s coal industry but also our commitment to supporting the central Queensland community,” Zashvin’s James Xu said in a statement.

Anglo American put the steelmaking coal portfolio up for sale while fending off BHP’s takeover overtures earlier this year, with the five-mine portfolio thought to be worth about $US5bn.

Richlister Sam Chong

“Our process to sell the rest of our steelmaking coal business - being the portfolio of steelmaking coal mines that we operate in Australia - is now at an advanced stage and we are on track to agree terms in the coming months,” Anglo American chief executive Duncan Wanblad said.

For 2023, Anglo American’s steelmaking coal operations generated 15 million tonnes of coal, equating to $1.3bn of earnings before interest, tax, depreciation and amortisation.

Major players including Yancoal and Glencore could pick up Moranbah North and Grosvenor while others take Capcoal and Dawson, according to The Australian’s DataRoom column.

Yancoal bought Coal and Allied from Rio Tinto in 2017, and a successful buyout of the Anglo assets would transform Yancoal into one of the top three steelmaking coal producers globally.

Mr Chong moved from Malaysia to Australia in 1972, working as an underground ventilation engineer at the Rosebery silver, lead and zinc mine in Tasmania after finishing postgraduate study at the University of NSW.

He later moved to Queensland Coal Mining Management, which became Jellinbah.

He was ranked in 71st place with a fortune of $1.89bn in The List - Australia’s Richest 250, published by The Australian in March this year.

The Australian recently reported that Jellinbah Group had posted a $1.07bn net profit for the 2024 financial year, delivering Mr Chong a $714m dividend.