Anglo American sells Australian coking coal mines

British mining company Anglo American has announced the sale of its coking coal mines in Australia to US-based Peabody Energy.

The move is driven by Anglo American’s plans to focus on the production of copper, high-quality iron ore and fertilizers.

The deal with Peabody Energy will be worth $3.8 billion, subject to regulatory approvals. Anglo American will receive an upfront payment of $2 billion, with another $725 million divided into four annual tranches to be paid by the buyer one year after the deal closes. The agreement also provides for additional payments of up to $550 million tied to the future profitability of the assets and $450 million subject to the restart of the Grosvenor mine in Queensland.

Peabody Energy will acquire the Moranbah North, Capcoal, Aquila and Grosvenor mines. They are expected to produce 11.3 million tons of high-quality hard coking coal in 2026. The deal is expected to be completed in the third quarter of 2025.

“This transformational transaction provides a rare opportunity for Peabody to acquire leading coking coal assets at an attractive price as we refocus our portfolio on seaborne metallurgical coal,” said Peabody President and CEO Jim Grech.

The acquisition is expected to transform Peabody’s coking coal segment, increasing its production from approximately 7.4 million tons in 2024 to an expected 21-22 million tons in 2026.

By 2026, total coking coal exports from all major global suppliers are likely to reach 369 million tonnes, up 6% from the 348 million tonnes shipped in 2023.