Peabody Warns of Potential Exit from Anglo Coal Deal Amid Moranbah Mine Crisis

May 5, 2025

Peabody Energy has issued a Material Adverse Change (MAC) notice to Anglo American, raising doubts over its proposed $3.78 billion acquisition of Anglo’s Australian steelmaking coal assets. The move follows the prolonged shutdown of the Moranbah North mine due to a gas ignition incident on March 31, which has left the site offline for over a month with no clear restart timeline.

Moranbah North is one of the cornerstone assets in the deal and a key producer of premium hard coking coal. Peabody stated that without clarity on when longwall production will resume, the uncertainty poses a significant threat to the transaction's value. CEO Jim Grech noted that if the issue is not resolved promptly, the company may terminate the acquisition agreements.

The original deal, announced in late 2024, included a $2.05 billion upfront payment, with deferred and milestone-linked payouts. The MAC notice now puts the entire transaction at risk, potentially triggering legal disputes between the two miners.