Anglo American plc (“Anglo American”) said its sticking to its decision to sell its steelmaking coal mines in Australia, to Peabody Energy (“Peabody”).
A statement released by Peabody, suggested the company is thinking of getting out of the deal.
Vic Svec of Peabody’s UIndustrial Relations, said last week Tuesday, the 08th April 2025, “following an ignition event last week at Anglo American Plc’s Moranbah North Mine, Peabody (NYSE: BTU) announced that it is reviewing all options related to its acquisition of steelmaking coal assets from Anglo American.”
But James Wyatt-Tilby, Head of Communications at Anglo, said in a statement, the company continues to work with Peabody towards satisfying the remaining customary conditions in agreements that are required for the completion of the Transaction.
“Anglo American is also making progress in relation to the temporary suspension of mining operations at the Moranbah North mine following what we believe to have been a minor ignition in the underground area of the mine on 31 March. Conditions in the mine normalised shortly afterwards and they remain stable, with data and camera footage showing no evidence of damage. Anglo American is working alongside industry experts and the safety regulator, Resources Safety & Health Queensland, to expedite re-entry into the mine and the subsequent safe resumption of mining operations” he said.
Anglo plans to sell its steelmaking coal business, to generate up to US$4.9 billion in aggregate gross cash proceeds, including the already announced sale of Anglo American’s interest in Jellinbah for approximately US$1.1 billion.
The agreement with Peabody, is to sell its portfolio in Australia (“Steelmaking Coal Portfolio”) for a cash consideration of up to US$3.775 billion.
Peabody’s agreed cash consideration of up to US$3.775 billion comprises an upfront cash consideration of US$2.05 billion at completion; deferred cash consideration of US$725 million; the potential for up to US$550 million in a price-linked earnout; and contingent cash consideration of US$450 million, linked to the reopening of the Grosvenor mine.