Peabody and Anglo American release updates on steelmaking coal acquisition
Published by Will Owen,
Editor
World Coal,
Peabody has notified Anglo American Plc of a Material Adverse Change (MAC) impacting its planned acquisition of steelmaking coal assets from the company, but Anglo is contesting this claim.
The MAC relates to issues involving the Moranbah North Mine, which remains inactive following what was described as a gas ignition event on 31 March 2025.
“While we have remained on track to complete the steelmaking coal acquisition from Anglo, the issues at Moranbah North have created significant uncertainty around the transaction,” said Jim Grech, Peabody President and CEO. “A substantial share of the acquisition value was associated with Moranbah North, yet there is no known timetable for resuming longwall production.”
If the MAC is not resolved to Peabody’s satisfaction in the limited timeframe specified under the companies’ acquisition agreements, Peabody may reportedly elect to terminate the agreements.
Anglo has released a statement noting Peabody’s current position, but contests the validity of the MAC.
According to Anglo’s statement:
“As previously announced, a small contained ignition occurred in the goaf at Moranbah North mine on 31 March 2025, resulting in the controlled and safe withdrawal of all personnel to the surface. Initial re-entry to Moranbah North mine was completed on 19 April 2025 and Anglo American is continuing to work closely with the safety regulator, Resources Safety & Health Queensland, industry experts and other key stakeholders as we progress towards a structured restart to longwall production once it is determined that it is safe to do so.
“As a result of the progress made to date towards a safe restart and the information available, Anglo American does not believe that the stoppage at Moranbah North constitutes a Material Adverse Change in accordance with the definitive agreements with Peabody.”
Anglo expects to continue working with Peabody towards addressing its concerns and satisfying the remaining customary conditions in those agreements that are required for completion of the transaction.
Read the article online at: https://www.worldcoal.com/coal/08052025/peabody-and-anglo-american-release-updates-on-steelmaking-coal-acquisition/