By Rhiannon Hoyle

Peabody Energy said it is reviewing an up to $3.78 billion deal to buy Anglo American's steelmaking coal operations following a fire at an Australian mine.

Anglo American agreed to sell its steelmaking coal business, including the Moranbah North mine, where the fire broke out last week, to St. Louis-based Peabody in November. It was the U.K.-based miner's first major step in a large-scale business reshaping announced last year as it fended off a takeover bid from rival BHP Group.

Workers at the Moranbah North underground mine, located in Australia's coal-rich Queensland state, were evacuated on March 31 after elevated carbon monoxide readings were detected, Anglo American said last week. The miner said data indicated "a small, contained ignition" and that it was monitoring conditions underground.

Peabody said it is reviewing all options related to its acquisition of the assets.

"The company remains in conversation with Anglo American to better understand the impacts of the event," it said in a statement. "Peabody is preserving all rights and protections under its purchase agreements."

Anglo American said in a statement that it continues to work with Peabody on completing the transaction and that it has provided the company with information on the suspension of mining operations at Moranbah North. It added that conditions in the mine remain stable and that it is working to facilitate re-entry into it.

Anglo American last year said the deal comprised an upfront cash payment of $2.05 billion, plus some other payments tied to prices and the reopening of the Grosvenor mine, where production was suspended in June, also following a fire. It was expected to be finalized by the third quarter this year.

The deal marked Peabody's biggest acquisition since it emerged from bankruptcy protection in 2017. It had filed for Chapter 11 in April 2016 after a sharp decline in coal prices left it unable to pay its debt.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

April 09, 2025 06:01 ET (10:01 GMT)

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