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LONDON - Anglo American (JO:AGLJ) plc announced Tuesday it will initiate arbitration proceedings against Peabody Energy after Peabody terminated agreements to acquire Anglo’s steelmaking coal business in Australia.
Peabody claimed that a March 31 incident at the Moranbah North mine constituted a Material Adverse Change (MAC) under the November 2024 sale agreements, allowing it to exit the deal.
Anglo American disputes this interpretation, noting the incident caused no damage to the mine or equipment. The company reports "substantial progress" toward restarting operations, including a recent milestone where workers approved a risk assessment supporting the restart strategy.
"We are confident in our belief that the event at Moranbah North in March does not constitute a MAC under the sale agreements with Peabody," said Duncan Wanblad, CEO of Anglo American, in the press release statement.
Anglo American indicated it attempted to negotiate amended terms to salvage the transaction but will now pursue damages for what it considers "wrongful termination" of the agreements.
The company expressed confidence in finding an alternative buyer, referencing "unsolicited inbound interest" received in recent months that it says demonstrates the "strategic value" of the steelmaking coal assets.
Anglo American continues to focus on safely restarting the Moranbah North mine through what it describes as a "rigorous and structured regulatory process" while maintaining operations across its steelmaking coal portfolio.
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