Peabody Energy, a mining company based in the United States, is expected to announce on August 19 whether it will continue with its $3.78 billion bid to buy Anglo American’s Australian coking coal mines. This update will come as the company runs out of time to renegotiate the purchase price for the deal, which has faced challenges in recent months.
The transaction, agreed in 2024, was meant to give Peabody ownership of several coal assets in Queensland’s Bowen Basin, a region known globally as one of the most important producers of coking coal used in steelmaking. The deal was part of Peabody’s plan to expand into the coking coal market and strengthen its global mining portfolio.
However, the process was disrupted in March 2025 when the Moranbah North mine, one of the assets in the deal, was shut down due to high gas levels. This closure triggered a clause in the sale agreement that allows either party to withdraw from or renegotiate the deal if a significant negative event happens between the signing and the completion of the sale. Peabody then initiated a 90-day consultation period to discuss the matter, which ended on August 3 without a new agreement being reached.
The closure of the Moranbah North mine has created uncertainty about the future of the deal. According to investment bank Jefferies, the chances of a last-minute settlement between both companies are now low, and arbitration is the most likely next step. The bank estimated that if the mine can resume operations and reach full capacity within three months from September 1, the total financial impact would be around $316 million.
Anglo American, which is based in the United Kingdom, disagrees with Peabody’s position. The company has argued that the shutdown of Moranbah North does not qualify as a “significant negative event” under the agreement, as the expected financial damage and downtime are limited. Anglo American’s Chief Executive Officer, Duncan Wanblad, has stated that the company is confident in its legal position and is ready to restart the sale process if necessary. He also confirmed that any decision on whether to proceed or not now lies with Peabody.
Part of the dispute between the two companies is linked to the uncertainty surrounding when the Moranbah North mine will reopen. The state regulator in Queensland is still assessing the safety of the mine and has not given a specific date for operations to resume. In a statement, the regulator said that reentry into the mine is being carried out in stages, with worker safety being treated as the top priority.
For Anglo American, a legal arbitration process would delay its broader restructuring plans and could raise new concerns among investors about its mine management practices and selection of buyers. Wanblad noted that if the company had to restart the sale process, there would likely be strong interest from previous bidders. However, any new process would likely delay the sale’s completion until 2026.
For Peabody Energy, walking away from the deal could help relieve the pressure from a $2 billion bridge loan that is due for repayment from late November. The company recently reported a loss in its second-quarter results, with earnings hit by a one-third drop in coal prices compared to the same period last year. Peabody has not made further public comments on the matter outside of normal business hours.
The outcome of this high-profile mining deal will have significant implications for both companies. It will also be closely watched in the global coal industry, where asset sales, environmental concerns, and shifting market conditions continue to influence major investment decisions.
