US-Australian company Coronado Global Resources, a global producer of high-quality metallurgical coal, announced on Monday, November 7, that it has jointly agreed with US-based thermal and coking coal producer Peabody Energy Corp to cease talks regarding a potential combination of the two companies. The company has pledged to pursue and implement its existing capital management plans and remains focussed on its existing capital investments and long-term development strategy.
It is not excluded that Coronado Global Resources has decided to expand in the thermal coal market under its own guidance. Accordingly, earlier the company had abandoned its strategy of focusing solely on coking coal, aiming “to take every advantage of the price arbitrage between thermal and metallurgical coal prices to maximise price realisations,” according to chief executive of Coronado Global Resources, Gerry Spindler. Specifically, with the proportion of thermal coal in the company's sales having risen to 21.6 percent from 17.8 percent in the same period of 2021, Coronado still intends to follow this chosen pattern. In the October-December period of the current year, the company expects to sell around 410,000 mt of thermal coal.