Photo: Anglo American
American coal producer Peabody Energy is reviewing all options related to its acquisition of Anglo American’s coal assets in Australia following an ignition event at one of the mines included in the deal.
“The company remains in conversation with Anglo American to better understand the impacts of the event,” said Peabody in a statement. “Peabody is preserving all rights and protections under its purchase agreements.”
The nearly $3.8 billion deal announced last year includes four metallurgical coal mines – Moranbah North, Grosvenor, Aquila and Capcoal – located in the Bowen Basin. On March 31, “a minor ignition [occurred] in the underground area of the [Moranbah North] mine,” said Anglo American, noting that it is making progress in relation to the temporary suspension of mining operations at the site.
In response to Peabody’s statement, Anglo American said it “continues to work with Peabody towards satisfying the remaining customary conditions in [the definitive] agreements that are required for completion of the transaction.”
Sources: Peabody Energy and Anglo American