Anglo American has announced it will sell its five coal mines in Queensland following the rejection of a takeover bid from BHP. 

The move is expected to cover the company's operations in the Bowen Basin include Moranbah North, Capcoal, Dawson, Aquila, and Grosvenor. 

Anglo American is seeking to “reset” its balance sheet, according to chief executive Duncan Wanblad, saying the changes would come “urgently”.

The divestiture impacts approximately 5,000 workers plus contractors, raising concerns about job security. 

Anglo American has acknowledged the “uncertainty for its workforce” but highlighted “strong buyer interest” in the assets. 

The company says it will implement any changes with “appropriate planning and engagement with relevant stakeholders”.

Last week, Anglo American rejected BHP's $64.6 billion takeover offer, which it saw as an undervaluation of the company. 

The decision to sell the coal mines is part of a broader strategy to focus on other markets, including copper, iron ore, and crop nutrients, primarily in southern Africa and South America. 

This shift involves exiting the platinum and diamond sectors, marking a significant restructuring of the 107-year-old London-based company.

The announcement has caused anxiety in small mining communities, especially for its potential impact on the community, including housing, water supply, and social services.Locals have called for community wellbeing to be prioritised in any sale discussions.

Queensland's Minister for Resources and Critical Minerals, Scott Stewart, echoed the need to prioritise workers and communities.

Minerals Council of Australia chief executive Tania Constable suggested that job losses were unlikely in the short term.

Anglo American's decision extends beyond coal, as it also plans to divest its De Beers diamond business and Anglo American Platinum operations. 

This strategic pivot aims to create a “radically simpler business”, according to Wanblad.

The Mining and Energy Union has expressed surprise at the decision to divest, considering the profitability of these assets. 

Union vice president Steve Smyth said efforts would be needed to ensure any new operators “behave” responsibly.

BHP is reportedly weighing its options as the deadline for its takeover bid approaches. 

The world's largest miner is believed to be considering an improved proposal but is cautious about bidding without engagement from Anglo. 

The acquisition would position BHP as the world's largest copper producer.