Anglo American: Moranbah mine blast won’t stop $5.7bn Peabody deal

Anglo American has rejected claims a recent explosion at its flagship Queensland mine will derail the $5.7bn sale of its coal assets to US giant Peabody.

An ignition event at the Anglo American Grosvenor mine in Central Queensland initially shut down production. Picture: Supplied

A resources giant is digging in its heels over the multibillion-dollar sale of its steelmaking coal mines, insisting a recent explosion at its flagship Central Queensland underground site will not derail the deal.
In November 2024, US coal miner Peabody struck a deal to buy Anglo American’s Queensland coalmines – which included Moranbah North and Grosvenor – for $US3.8bn ($AU5.7bn).

But the purchase was at risk of being derailed after a high carbon monoxide levels and a likely explosion closed Moranbah North in March 2025, prompting Peabody to review the agreement.

Then in May Peabody notified Anglo of a material adverse change regarding the Moranbah North Mine incident.

Anglo American says “considerable progress” had been made towards a safe restart at Moranbah North following the March 31 incident. Picture: Supplied by Anglo American

In its most recent quarterly production report Anglo American stated “considerable progress” had been made towards a safe restart at Moranbah North following the March 31 incident “including confirmation that there is no meaningful damage from the event”.

“Anglo American continues to believe that the current production stoppage at the Moranbah North steelmaking coal mine … does not constitute a material adverse change in accordance with the definitive agreements signed with Peabody in November 2024.”

“We continue to work with Peabody towards satisfying the remaining customary conditions in those agreements that are required for completion of the transaction.

Chief executive officer Duncan Wanblad said there was “a full restart expected in due course”.

“On this basis, we continue to believe that this event does not constitute a material adverse change under our agreements with Peabody,” Mr Wanblad said.

Peabody declined to comment when asked if it was still committed to the original deal inked in late 2024.

An ignition event at the Anglo American Grosvenor mine shut down production. Picture: Supplied

Another $450m of the billion dollar sale also depended on whether Grosvenor mine would reopen after operations were suspended in July 2024 following an explosion and fire, four years after another explosion serious injured five men at the underground mine in 2020.

Anglo revealed in June this year it was in the final stages of reopening Grosvenor as crews removed the last of the material filling the shafts and were looking at news ways to re-enter the mine.

Anglo’s steelmaking coal production was 51 per cent lower at 2.1m tonnes, largely because of the suspension at Grosvenor in June 2024, Moranbah North event and the sale of Jellinbah to Zashvin for $1.6bn.

Anglo American said it was in the final stages of reopening Grosvenor as crews removed the last of the material filling the shafts and were looking at news ways to re-enter the mine. Pics: Supplied by Anglo American

But the report stated this drop was “partially offset” by higher production at the Aquila underground mine.

Anglo American said it expected to report negative underlying earnings for its steelmaking coal division in the first half of 2025. The company’s unit cost guidance of about $105 per tonne was now under review because of the Moranbah stoppage.

Anglo American Moranbah North mine. Picture Tara Miko

An Anglo American spokeswoman said the company had investigated the nature and cause of the ignition event at Moranbah North, and submitted a report to Resources Safety and Health Queensland.

“We continue to work closely with relevant stakeholders and remain committed to working toward a safe and structured restart at Moranbah North,” the spokeswoman said.

Moranbah North was the subject at an industry-first tripartite forum initiated by Anglo to discuss and learn from the incident.

The forum was chaired by Resources Safety and Health acting commissioner Ken Singer and involved Anglo experts and senior leaders, the Mining and Energy Union, industry safety and health representatives, site safety and health representatives and mines inspectors.

Anglo American Australia chief executive officer Dan van der Westhuizen said the forum represented “a significant step toward fostering a more collaborative and transparent approach to safety” and provided a valuable platform to seek input and inform the final investigation report.

“The forum has been described as setting a new benchmark in safety collaboration, enabling all parties to explore potential regulatory and structural improvements that could benefit the entire coal mining industry,” Mr van der Westhuizen said.

Originally published as Anglo American: Moranbah mine blast won’t stop $5.7bn Peabody deal