UK-based mining giant Anglo American has confirmed that US-based coal miner Peabody Energy has withdrawn from its agreement to acquire Anglo American’s steelmaking coal assets in Australia.
The original deal, struck in late 2024, included Moranbah North, Capcoal, Aquila, and Grosvenor mines, key suppliers of coking coal for the steel industry.
No material adverse change
Anglo American clarified that the March 31 fire incident at Moranbah North does not constitute a material adverse change (MAC) under the terms of the sale. The company stressed that the mine and equipment were undamaged, and significant progress had been made with regulators, unions, and employees toward a safe restart.
Just last week, the company’s workforce approved the critical risk assessment that underpins the restart plan.
Arbitration ahead
CEO Duncan Wanblad expressed disappointment at Peabody’s withdrawal, noting that Anglo American had offered amended terms and technical solutions to avoid disputes. Since Peabody has withdrawn, the company said it will now pursue arbitration to seek damages for what it deems wrongful termination.
Next steps for Anglo American
Anglo American will now focus on restarting operations at Moranbah North. At the same time, the company revealed that it has already been approached by other potential buyers. Its management remains confident that an alternative sale process will be concluded, reflecting the strategic value and long-term market fundamentals of coking coal in steelmaking.