Business
Anglo American update on SMC sale process
Anglo American plc announced that Peabody Energy terminated their November 2024 agreement to acquire Anglo American's Australian steelmaking coal business. Anglo American maintains that the March 31, 2025, event at the Moranbah North mine does not constitute a Material Adverse Change (MAC) as the mine and equipment sustained no damage, and progress toward restarting the mine is ongoing. They express disappointment with Peabody's decision, stating they made efforts to find a solution, including proposing amended terms. Anglo American will initiate arbitration to seek damages and are confident of securing a sale of the assets through an alternative process. Disclaimer*
About this update from Anglo American Plc
[{"type":"text","content":"\n\n\n\n\n\n19 August 2025\n\n\n\n\nAnglo American update on sale process for steelmaking coal business\n\n\n\n\n\n\n\n\n\nAnglo American plc (\"Anglo American\") notes the statement made by Peabody Energy (\"Peabody\") on 19 August purporting to terminate its November 2024 agreements to acquire Anglo American's steelmaking coal business in Australia.\n \nAnglo American continues to focus on and make good progress towards the safe restart of Moranbah North and firmly believes that the event that occurred on 31 March 2025 at the mine, which forms part of Anglo American's steelmaking coal business, does not constitute a Material Adverse Change (\"MAC\") under the definitive agreements with Peabody. This belief is reinforced by the lack of damage to the mine or equipment and the clear progress being made within the rigorous and structured regulatory process towards restarting the mine.\n \nDuncan Wanblad, CEO of Anglo American, said: \"We are confident in our belief that the event at Moranbah North in March does not constitute a MAC under the sale agreements with Peabody. Our view is supported by the lack of damage to the mine and equipment, as well as the substantial progress made with the regulator, our employees and the unions, and other stakeholders as part of the regulatory process towards a safe restart of the mine. In fact, just in the last week we achieved a further important milestone, with our workforce signing off the risk assessment that underpins the restart strategy. We are therefore very disappointed that Peabody has decided not to complete the transaction.\n \n\"Despite our strongly held view, we believe that it would have been better for all parties to avoid a legal dispute. On that basis we have invested significant effort and shown great flexibility over recent months to find a solution for Peabody, including proposing amended terms and technical options. Following Peabody's decision not to proceed with the transaction, we continue to focus on the safe restart of Moranbah North and in delivering value from the entirety of our SMC portfolio. We continue to reserve our rights under the definitive agreements, we are confident in our legal position and will shortly initiate an arbitration to seek damages for wrongful termination.\"\n \nDuncan Wanblad concluded: \"We held a very competitive process...