The Institute for Energy Economics and Financial Analysis (IEEFA) has shared an insight into US-based Peabody Energy’s acquisition of Anglo American’s coal assets, stating that Peabody Energy will become one of the largest coal producers in Queensland, Australia, transforming it from a mainly thermal coal miner to a “true coking coal producer”.
With the $3.32 billion acquisition, Peabody Energy now holds majority shares in the Moranbah North, Grosvenor, Aquila and Capcoal mines and is expected to have an annual coking coal production of 20 million mt by 2026.
However, with the new mines under its control, Peabody Energy has to meet the sustainability record of Anglo American in dealing with emissions. Anglo has for many years drained the coal mine methane gas prior to and during mining. According to the company’s half-year financial report, it invested in excess of $100 million yearly to keep methane emissions under control, mitigating 60.0 percent of the emissions in the mining process.
Peabody has stated that it will establish new long-term targets for sustainability and emissions in the coming months.