Peabody Cancels Acquisition Plans Following Issues at Moranbah North Mine

Peabody Terminates Acquisition of Anglo American

In a significant development in the mining sector, Peabody Energy (NYSE: BTU) announced on August 19, 2025, that it has officially terminated its planned acquisition of Anglo American Plc. This decision was driven by a material adverse change (MAC) related to Anglo's steelmaking coal assets, particularly following a serious ignition event at the Moranbah North Mine five months earlier.

The incident at the Moranbah North Mine, which remains under investigation, has caused considerable uncertainty over the mine's future production capabilities. According to Peabody's President and CEO, Jim Grech, the companies failed to reach a revised agreement that would adequately address the financial impacts of the MAC. "Peabody has chosen to terminate the transaction and will continue to execute our plans to create substantial value from our diversified global asset portfolio," Grech stated.*

Originally, the acquisition was expected to close in April 2025, bringing with it new capabilities within Peabody's portfolio. However, as the ramifications of the ignition event unfolded, it became evident that the timeline for resuming normal production at Moranbah North was far from certain. Prior to the MAC, the Moranbah site was projected to yield around 5.3 million tons of sellable coal in 2025.

In addition to terminating the acquisition deal with Anglo, Peabody has also pulled the plug on the agreement that involved the sale of the Dawson Mine to PT Bukit Makmur Mandiri Utama. The cancellation marks a strategic shift for Peabody as it aims to refocus its portfolio without the disruptions caused by the recent developments at Anglo.

Grech pointed out that Peabody's strategic framework remains robust, emphasizing plans to enhance value through multiple avenues. The four-pronged strategy for value creation includes:

1. Responsible Operations: Maintaining safe, productive, and environmentally sound mining operations.
2. Shareholder Returns: Aiming to return between 65-100% of available free cash flow to shareholders primarily through share buybacks.
3. Organic Growth: Leveraging Peabody's extensive asset portfolio to foster organic growth opportunities.
4. Financial Discipline: Upholding a strong balance sheet while practicing stringent capital management.

As a leading coal producer, Peabody continues to be a vital player in providing the essential resources needed for energy and steel production, balancing operational efficiency with a commitment to sustainability. The company aims to rebalance and better position itself in the evolving energy landscape, focusing on sustainable coal operations. Interested parties and stakeholders can follow up on further updates at PeabodyEnergy.com.

By remaining flexible and strategic, Peabody is committed to securing its place in the global coal market while responding to the challenges that arise from unforeseen circumstances in the industry, as evidenced by this significant acquisition termination.