April 8 (Reuters) - Peabody Energy ( BTU ) said on

Tuesday it was reviewing all options related to its $3.78

billion acquisition agreement with Anglo American for

some of its Australian steelmaking coal assets after an ignition

event at a mine.

The acquisition deal was signed last year and was expected

to close in mid-2025.

According to media reports, production at Anglo American's

Moranbah North mine - located in the Bowen basin in Queensland,

Australia - was suspended after an underground fire broke out at

the mine last week.

Peabody said it remains in conversation with Anglo American

to better understand the impacts of the event and would preserve

all rights and protections under its purchase agreements.

The U.S.-based coal producer added it had engaged in

preliminary discussions with potential investors regarding

permanent financing for the acquisition.

Peabody's deal for Anglo American's assets included an

upfront payment of $2.05 billion at completion, deferred cash

consideration of $725 million and another potential $550

million. It also included a contingent cash consideration of

$450 million linked to the reopening of the Grosvenor mine.

Anglo American did not immediately respond to a Reuters

request for comment, on the fire and Peabody's announcement,

outside business hours.

Anglo American's deal with Peabody was its first major

divestment in a wider restructuring plan. The British company,

which last year fended off a $49 billion takeover bid from BHP

Group ( BHP ), is planning to shed its platinum, nickel,

diamond and coal assets to focus on copper.

(Reporting by Vallari Srivastava in Bengaluru; Editing by

Shinjini Ganguli)