Anglo American says it will initiate arbitration proceedings against Peabody Energy after the US group terminated its agreement to acquire the company’s steelmaking coal business in Australia.

Stay informed on Anglo American news – join our WhatsApp channel.

The two companies signed the sale deal in November 2024, but Peabody withdrew on August 19, citing the March 31 incident at the Moranbah North mine as grounds for backing out. Anglo American disputes this, insisting the event does not constitute a Material Adverse Change (MAC) under the agreements.

CEO Duncan Wanblad said the mine sustained no damage to equipment or infrastructure and that significant progress has been made in the regulatory process to restart operations. “Just in the last week we achieved a further important milestone, with our workforce signing off the risk assessment that underpins the restart strategy,” he noted.

Wanblad expressed disappointment at Peabody’s decision, saying Anglo American had invested “significant effort and shown great flexibility” in recent months by proposing revised terms and technical solutions. “Despite our strongly held view, we believe that it would have been better for all parties to avoid a legal dispute,” he added.

ALSO READ: Copper and iron ore power Anglo American’s $3 Billion interim earnings

Anglo American plans to claim damages from Peabody for ending their deal early, while moving ahead with restarting Moranbah North and boosting value from its steelmaking coal assets.

The company also says it is confident in finding another buyer, pointing to renewed inbound interest in recent months. “We held a very competitive process to sell this high-quality parcel of steelmaking coal assets in 2024,” Wanblad said. “The unsolicited interest we’ve seen recently is testament to the strategic value of these assets and the attractive long-term market fundamentals.”