Anglo American has struck a deal to offload its remaining coal assets to Peabody Energy in a transaction that could reach $3.8bn (£3bn). The agreement includes a $2.1bn cash payment upfront, along with a deferred sum of $725m.
Additionally, Peabody has consented to the possibility of up to $550m in a price-linked earnout and another $450m contingent on the reopening of the Grosvenor mine, as reported by .
The portfolio comprises an 88% interest in the Moranbah North joint venture, an 86% stake in the Roper Creek joint venture, and a 70% share in the Capcoal joint venture, all located in Australia.
With the previously announced sale of Anglo American’s stake in Jellinbah, this latest deal signifies that the divestment of its coal business could yield up to $4.9bn.
This move is part of Anglo American's significant restructuring efforts, which began after fending off BHP's earlier acquisition interests this year. The company has been vocal about its intentions to streamline operations and dispose of or demerge non-core segments.
"The sale of our steelmaking coal business is another important step towards delivering the strategy that we set out in May to create a world class copper, premium iron ore and crop nutrients business," commented Duncan Wanblad, CEO of Anglo American. He further emphasised the company's commitment: "We are absolutely focused on delivering that strategy and unlocking the associated value as we streamline our cost structures and create a much simpler, more resilient and more agile business that will enable full market value recognition."
Peabody's President and Chief Executive Jim Grech commented on the acquisition of assets from Anglo American, stating: "We’re pleased to acquire these world-class assets from Anglo American, a company that shares our strong values of safety, sustainability and social license to operate."
The completion of the deal, subject to various conditions such as customary competition and regulatory clearances, is anticipated by the third quarter of 2025.
