Peabody Energy is snapping up a raft of Anglo American metallurgical coal mines in a $5 billion-plus deal expected to close mid-2025.
The acquisition includes the Moranbah North, Grosvenor, Aquila, and Capcoal operations in the Bowen Basin.
And Peabody said Indonesia’s PT Bukit Makmur Mandiri Utama (BUMA) had agreed to acquire a majority interest in Anglo’s Dawson mine from it for a total consideration of almost $700 million in a back-to-back transaction.
Peabody describes its purchases as being complementary to its existing Australian platform, including the Centurion mine, and expects them to produce about 11.3 million tonnes of primarily hard coking coal in 2026.
“This value-enhancing acquisition builds upon actions we have taken in recent years to strengthen our balance sheet and expand shareholder returns,” Peabody chief financial officer Mark Spurbeck said.
Related: Centurion emerging as $2.4bn jewel in Peabody crown
Peabody has agreed to pay about $3.5 billion in cash ( $US2.32 billion) including a sum at closing and four annual installments commencing on the first anniversary of the completion date.
Peabody has also agreed to further contingent payments of up to about $1.5 billion ($US1.0 billion) subject to favourable future events, including the successful restart of the Grosvenor mine.
The transactions announced today follow a $1.6 billion deal early this month for Anglo’s stake in the Jellinbah Group.
Related: Anglo to sell Jellinbah Group stake for $1.6bn
“In steelmaking coal, through a combination of today’s announced transaction and our previously announced agreement to sell our interest in Jellinbah, we stand to unlock up to $US4.9 billion (about $7.5 billion Australian) of value, reflecting the high quality of the assets and adding to our balance sheet resilience,” Anglo American chief executive Duncan Wanblad said.
“Peabody is a long-established and respected operator and we will work together and with our workforce, local communities, government, customers and partners to ensure a successful transition.”
Sources had also placed Yancoal and Stanmore Coal as being among the final contenders for the Anglo assets, according to recent reports in financial news outlets.
The acquisition is contingent on regulatory approvals, clearance of pre-emption rights by minority partners of the assets, and other customary closing conditions.
