Peabody Energy is reviewing all options related to its acquisition of Anglo American’s steelmaking coal assets in light of the underground gas ignition at Moranbah North last week.
The company said today it remained in conversation with Anglo American to better understand the impacts of the event.
‘Peabody is preserving all rights and protections under its purchase agreements,’ it said.
A Resources Safety and Health Queensland directive remains in place preventing re-entry to the Moranbah North mine after an incident on March 31.
Workers were evacuated from the longwall mine on that day after elevated carbon monoxide readings were detected in the goaf – the void from which coal in a seam has been extracted.
An Anglo American spokeswoman said last week that data indicated a small, contained ignition occurred in the goaf but did not extend to the longwall face.
“Goaf conditions normalised shortly after the incident occurred and remain stable,” she said.
Anglo’s Grosvenor operation also remains out of action after coal gas ignited in June last year, causing a fire in the underground workings.
Anglo American entered into agreements late last year to sell its Moranbah North, Grosvenor, Aquila, Capcoal and Dawson operations to Peabody in a $5 billion-plus transaction expected to close in the third quarter of this year.
Peabody agreed to pay the equivalent of about $3.5 billion in cash including a sum at closing and four annual installments commencing on the first anniversary of the completion date.
It also agreed to further contingent payments of up to about $1.5 billion subject to favourable future events, including the successful restart of the Grosvenor mine.
