LONDON, April 9 (Reuters) - Peabody Energy ( BTU ) is
reviewing all options related to its $3.78 billion acquisition
agreement with Anglo American for some of its Australian
steelmaking coal assets after a fire halted production at a mine
included in the deal.
The deal was signed last year and expected to close in
mid-2025.
Production at Anglo American's Moranbah North coal mine -
located in the Bowen basin in Queensland, Australia - was
suspended after an underground fire broke out at the mine last
week.
Peabody said on Tuesday it was in conversation with Anglo
American to better understand the impacts of the event and would
preserve all rights and protections under its purchase
agreements.
Anglo American said it was providing information to Peabody
on the suspension at Moranbah North.
"At the mine, conditions remain stable as we progress with
developing our staged re-entry management plan and risk
assessment," it said in an emailed statement on Wednesday.
U.S.-based coal producer Peabody said 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,
after another fire broke out there in June, ahead of the
acquisition.
Anglo American's Peabody deal was its first major divestment
in a wider restructuring plan. The London-listed company, which
last year fended off a $49 billion takeover bid from the world's
biggest miner BHP Group ( BHP ), has agreed to sell its nickel
and coal assets and is in the process of divesting platinum and
diamonds to focus on copper and iron ore.