Anglo American still working with Peabody on coal sale after ignition
Anglo American PLC on Thursday said it continues to work with Peabody Energy Corp to conclude the sale of its Grosvenor mine in Queensland, Australia.
The London-based diversified miner late in November last year agreed to sell its remaining steelmaking coal portfolio to Peabody Energy for $3.78 billion.
Anglo American’s statement on Thursday came a day after Peabody Energy said on Wednesday it was reviewing all options related to its acquisition of steelmaking coal assets from Anglo American after the ‘ignition event’.
‘The company remains in conversation with Anglo American to better understand the impacts of the event,’ Peabody Energy said, adding: ‘Peabody is preserving all rights and protections under its purchase agreements.’
Anglo American acknowledged the ignition, noting that it continues to work with Peabody towards satisfying the remaining conditions required for completion of the transaction.
The miner said it is making progress on the temporary suspension of mining operations at the Moranbah North mine following what it believes to have been a ‘minor ignition’ in the underground area of the mine on March 31.
‘Conditions in the mine normalised shortly afterwards and they remain stable, with data and camera footage showing no evidence of damage,’ the mining group said.
Anglo American is working alongside industry experts and the safety regulator, Resources Safety & Health Queensland, to expedite re-entry into the mine and the subsequent safe resumption of mining operations, it said.
Anglo shares rallied 8.7% at 1,918.60 pence on Thursday morning in London, and they were up 7.6% to R 481.73 in Johannesburg.
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