LONDON, April 9 (Reuters) – Peabody Energy is reassessing its $3.78 billion acquisition of certain Australian steelmaking coal assets from Anglo American following a fire that halted production at a mine included in the deal.
The deal, signed last year, is still set to close in mid-2025. However, production at Anglo American’s Moranbah North coal mine in Queensland, Australia, was suspended after an underground fire broke out last week. Peabody announced on Tuesday that it is in discussions with Anglo American to assess the full impact of the incident and to ensure it retains all rights and protections under the purchase agreement.
Anglo American confirmed it is sharing details with Peabody about the suspension at the Moranbah North mine. The company stated on Wednesday that conditions at the site remain stable as it works on a plan to safely re-enter the mine and conduct a risk assessment.
Peabody, based in the U.S., also revealed that it has held preliminary talks with potential investors to secure permanent financing for the acquisition. The deal includes an upfront payment of $2.05 billion at completion, a deferred cash consideration of $725 million, and an additional $550 million. There is also a contingent cash consideration of $450 million tied to the reopening of the Grosvenor mine, which had been closed after a fire in June, ahead of the acquisition.
Anglo American’s sale to Peabody is part of the company’s broader restructuring plan. The London-listed company, which recently fended off a $49 billion takeover bid from BHP Group, has been selling its nickel and coal assets and plans to focus on copper and iron ore, while spinning off its platinum and diamond operations.
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