US-based coal producer Peabody Energy has raised concerns over its planned acquisition of Anglo American’s Tier 1 Australian steelmaking coal assets, citing a material adverse change (MAC) related to the Moranbah North coal mine in Queensland’s Bowen basin in Australia.
The mine, part of the acquisition, has been inactive since a gas ignition event on 31 March 2025.
Peabody indicated that it may withdraw from the agreement if the issues are not resolved within a specified time frame.
Last month, Peabody Energy announced that it was reviewing its options regarding the acquisition after the mine fire.
Peabody president and CEO Jim Grech said: “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.
“A substantial share of the acquisition value was associated with Moranbah North, yet there is no known timetable for resuming longwall production.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataMeanwhile, Anglo American has countered by stating that the production halt does not constitute a MAC, based on the definitive agreements signed with Peabody in November last year.
Anglo American said in a statement: “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 American 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.”
