Anglo American Sells Aussie Coal Mines To Peabody Energy For $3.78-B

Anglo American has announced having agreed to sell its Australian steelmaking coal mines to Peabody Energy for a cash consideration of up to $3.78 billion.

Peabody’s cash consideration includes an upfront payment of $2.05 billion at completion and deferred cash payments totaling $725 million. I Photo: Peabody Energy

This marks the mining giant's first major disposal as part of a broader restructuring strategy, Melanie Burton and Aby Jose Koilparambil reported for Reuters.

The deal reflects Anglo American’s shift to focus on copper and iron ore following its successful defense against a $49 billion takeover bid from BHP Group in May. Peabody’s cash consideration includes an upfront payment of $2.05 billion at completion and deferred cash payments totaling $725 million.

The deal also features a price-linked earnout of up to $550 million and contingent cash consideration of $450 million, tied to the reopening of the Grosvenor mine, Anglo American stated.