Peabody has agreed to acquire steelmaking coal assets from Anglo American plc, accelerating its strategy to shift its global coal portfolio toward seaborne metallurgical coal.
The transaction, valued at USD 2.32 bln in cash, is expected to close by mid-2025, subject to customary conditions. Peabody may also make contingent payments of up to USD 1 bln, depending on future favorable events.
The acquisition includes four metallurgical coal mines in Australia’s Bowen Basin, Moranbah North, Grosvenor, Aquila, and Capcoal, renowned for producing high-quality steelmaking coal. Around 80pct of the output is hard coking coal. These mines are expected to produce 11.3 mln tons of coking coal in 2026 and have over 20 years of mine life, with 306 mln tons of marketable reserves.
This deal will significantly boost Peabody’s metallurgical coal production from an estimated 7.4 mln tons in 2024 to 21-22 mln tons by 2026.
