Anglo American has agreed to sell its portfolio of steelmaking coal mines that it operates in Australia to Peabody Energy for a cash consideration of up to US$3.775 billion.
The acquisition includes four metallurgical coal mines – Moranbah North, Grosvenor, Aquila, and Capcoal – located in the Bowen Basin. It is expected to transform Peabody’s metallurgical coal segment, increasing production from an estimated 7.4 million tons in 2024 to an expected 21-22 million tons in 2026.
“This value-enhancing acquisition builds upon actions we have taken in recent years to strengthen our balance sheet and expand shareholder returns. Subsequent to the transaction closing, we anticipate continuing our shareholder return program based on available free cash flow, while a portion of cash flows will be used to fund the transaction during the deferred payment period,” Peabody Chief Financial Officer Mark Spurbeck said.
“Once we fully integrate the acquired metallurgical coal assets into our seaborne portfolio, we will have an even stronger platform to provide significant value upside to our shareholders.”
An upfront cash consideration of $2.05 billion is subject to normal completion adjustments and is expected by the third quarter of 2025.
Sources: Peabody Energy and Anglo American