Peabody Energy is reconsidering its proposed acquisition of Anglo American’s Australian coal assets following a significant development at the Moranbah North mine. In November 2024, Peabody agreed to acquire four metallurgical coal mines from Anglo American, with the deal valued at up to $3.78 billion. However, an underground fire in March 2025 at the Moranbah North mine, which led to its closure, has cast doubt over the transaction.

The challenges at the Moranbah North mine play a substantial role in the overall valuation of the acquisition. Peabody CEO Jim Grech highlighted the critical nature of resolving these issues for the continuation of the deal. Given the uncertain timeline for the mine to resume production, Peabody has indicated it might exit the deal if solutions are not found within the contractual obligations. Reuters reported that the fire incident has been a cause for concern among investors and stakeholders looking at the acquisition's future.

The incident has also attracted the attention of mining regulators, leading to ongoing investigations into the safety and operation standards at the Moranbah North site. Discussions between Peabody and Anglo American continue as both companies work to understand the fire's impact on the acquisition. The decision on whether Peabody proceeds with this major acquisition hinges on how quickly and effectively they can overcome the present challenges at the mine.