Australian government announcements and legislative records

Anglo American Exits Australian Coal Mining with $3.8 Billion Sale to Peabody Energy, Total Proceeds Up to $4.9 Billion

Nov 25, 2024, 01:44 AM

Anglo American has officially exited Australian coal mining through a significant transaction valued at up to US$3.8 billion. The company has agreed to sell its remaining steelmaking coal portfolio to Peabody Energy, which is expected to generate total cash proceeds of up to US$4.9 billion. The deal includes approximately $750 million in deferred payments over five years, along with contingent payments linked to met coal prices exceeding $235 per ton over the next five years. Additionally, BUMA may have the option to acquire the Dawson mine for $445 million. This announcement follows Anglo American's earlier plans to sell met-coal and spin out Amplats, which are anticipated to be finalized within the next three months. The Australian government is also moving forward with a proposal to provide tax incentives for organizations involved in producing hydrogen and critical minerals, amidst local lobbying efforts for coal mining as a referendum approaches in Crowsnet Pass.