Importance Score: 38 / 100 🔵
- The mining firm indicates the incident involved a ‘minor ignition’ on March 31
Negotiations persist concerning Anglo American’s divestiture of its coal assets, after the prospective purchaser announced a review of their alternatives in the wake of a fire at an Australian mine. This situation introduces uncertainty into the potential sale of Anglo American’s coal division, prompted by a recent incident at a mine in Australia.
The mining giant informed stakeholders that the state of affairs at its Moranbah North facility, which produces approximately 5.6 million tonnes of steelmaking coal annually, has stabilised following an explosion last week.
Anglo American possesses an 88 percent share in Moranbah North, which it consented to sell in November, along with a substantial portion of its coal resources, to Peabody Energy for a sum potentially reaching $3.8 billion (£3 billion).
Moranbah North Mine Incident
The company believes that the incident was triggered by a ‘minor ignition’ on March 31 within the underground section of the mine, situated in Central Queensland’s Bowen Basin.
Anglo American stated that conditions rapidly returned to normal and ‘remain stable’, with data and video evidence showing ‘no indication of damage’.

vCard.red is a free platform for creating a mobile-friendly digital business cards. You can easily create a vCard and generate a QR code for it, allowing others to scan and save your contact details instantly.
The platform allows you to display contact information, social media links, services, and products all in one shareable link. Optional features include appointment scheduling, WhatsApp-based storefronts, media galleries, and custom design options.
Production at Moranbah North is currently halted, but the company affirmed it is collaborating with industry specialists and Queensland’s workplace health and safety regulator to ‘expedite re-entry into the mine and the subsequent safe resumption of mining activities’.
Strategic Direction: In November, mining conglomerate Anglo American agreed to the potential $3.8 billion (£3 billion) sale of a majority of its coal assets to Peabody Energy.
Peabody Energy Re-evaluates Acquisition
However, due to the occurrence at Moranbah North, Peabody declared on Tuesday that it was ‘re-evaluating all options’ pertaining to the acquisition.
Peabody further stated it ‘remains in communication with Anglo American to gain a clearer understanding of the repercussions of this event. Peabody is safeguarding all rights and protections as stipulated under its purchase agreements.’
Anglo American communicated on Thursday that it ‘continues to engage with Peabody to fulfil the remaining standard conditions within those agreements that are necessary for the transaction’s conclusion’.
Anglo American’s Restructuring Initiative
This divestment constitutes a significant restructuring programme initiated by Anglo American after rejecting a substantial $39 billion takeover proposition from BHP.
Beyond its steelmaking coal operations, Anglo American intends to separate its platinum division and divest its nickel and De Beers diamond sectors.
Two months prior, the London-headquartered enterprise reached an agreement to sell its nickel business to MMG Singapore Resources for $500 million.
This transaction followed a considerable decline in nickel values, attributed to surplus output from Indonesia and China, a stronger US dollar, and diminished demand for electric vehicles.
Anglo American has indicated that this strategic realignment will enable a greater focus on the production of copper, premium iron ore, and crop nutrients.
Copper is an essential commodity for the energy transition, owing to its application in technologies including solar panels, power lines, wind turbines, and electric vehicles.
Market Reaction
Anglo American shares experienced an upswing of 8.7 percent to 1,918.6p on Thursday morning, positioning them as the foremost FTSE 100 gainer, despite a year-to-date contraction of approximately 19 percent.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you