Anglo American update on sale of steelmaking coal business

Anglo American notes the statement made by Peabody Energy on 19 August purporting to terminate its November 2024 agreements to acquire Anglo American’s steelmaking coal business in Australia.

Anglo American continues to focus on and make good progress towards the safe restart of Moranbah North and firmly believes that the event that occurred on 31 March 2025 at the mine, which forms part of Anglo American’s steelmaking coal business, does not constitute a Material Adverse Change (“MAC”) under the definitive agreements with Peabody. This belief is reinforced by the lack of damage to the mine or equipment and the clear progress being made within the rigorous and structured regulatory process towards restarting the mine.

Duncan Wanblad, CEO of Anglo American, said: “We are confident in our belief that the event at Moranbah North in March does not constitute a MAC under the sale agreements with Peabody. Our view is supported by the lack of damage to the mine and equipment, as well as the substantial progress made with the regulator, our employees and the unions, and other stakeholders as part of the regulatory process towards a safe restart of the mine. In fact, just in the last week we achieved a further important milestone, with our workforce signing off the risk assessment that underpins the restart strategy. We are therefore very disappointed that Peabody has decided not to complete the transaction.

“Despite our strongly held view, we believe that it would have been better for all parties to avoid a legal dispute. On that basis we have invested significant effort and shown great flexibility over recent months to find a solution for Peabody, including proposing amended terms and technical options. Following Peabody’s decision not to proceed with the transaction, we continue to focus on the safe restart of Moranbah North and in delivering value from the entirety of our SMC portfolio. We continue to reserve our rights under the definitive agreements, we are confident in our legal position and will shortly initiate an arbitration to seek damages for wrongful termination.”

Duncan Wanblad concluded: “We held a very competitive process to sell this high-quality parcel of steelmaking coal assets in 2024 and the unsolicited inbound interest expressed to us in recent months is testament to the strategic value of these assets and the attractive long-term market fundamentals. We are confident that we will successfully conclude an alternative sales process for value in due course.”