LONDON (dpa-AFX) - U.K.-headquartered mining company Anglo American plc (AAL.L) on Tuesday announced that it expects to continue working with Peabody towards addressing its concerns and satisfying the remaining customary conditions in respect of the planned sale of Anglo American's portfolio of steelmaking coal mines in Australia to U.S.-based Peabody Energy Corporation (BTU).
The clarification follows Peabody notifying Anglo American that the issues involving the Moranbah North Mine constituted a Material Adverse Change as per the deal terms. The definitive agreements in respect of the proposed sale were announced on November 25, 2024.
The dispute between the two companies was triggered by an ignition that occurred in the goaf at Anglo American's Moranbah North mine on March 31. Anglo American has clarified that the initial re-entry to Moranbah North mine was completed on April 19.
Peabody said, 'If the MAC is not resolved to Peabody's satisfaction in the limited timeframe specified under the companies' acquisition agreements, Peabody may elect to terminate the agreements.'
The company said it is continuing to work closely with the safety regulator, industry experts and other key stakeholders to progress towards a structured restart to longwall production subject to safety clearance.
Considering the progress made, Anglo American said it does not believe that the stoppage at Moranbah North constitutes a Material Adverse Change in terms of the definitive agreements with Peabody.
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