November 25, 2024 - Peabody Energy is set to transform its metallurgical coal production with the acquisition of four coal mines in Australia.

The NYSE-listed company announced it will pay $3.8-billion for Anglo American’s steelmaking coal assets, which include the Moranbah North, Grosvenor, Aquila and Capcoal mines in the Bowen basin.

These mines are complementary to Peabody’s existing Australian platform, including the Centurion mine, and are expected to produce about 11.3-million tons of primarily hard coking coal in 2024.

The acquisition will transform Peabody into a leading global seaborne metallurgical coal producer, with output expected to rise from 7.4-million tons this year to between 21-million and 22-million tons in 2026.

The expanded Australian portfolio will enable Peabody to tap into the growing demand in Asian markets.

"This transformative transaction presents a rare opportunity for Peabody to acquire premier steelmaking coal assets at a compelling valuation as we reweight our portfolio toward seaborne metallurgical coal,” said Peabody CEO Jim Grech.

“The transaction is strategically aligned, immediately accretive and highly synergistic, positioning us to better serve the best metallurgical coal demand centers in the world.”

The acquired mines have an average mine life of more than 20 years with 306-million tons of marketable reserves and an additional 1.7-billion tons of coal resources.

The transaction is expected to close mid-2025.