Production at the Grosvenor mine is expected to resume and is part of the sale. Photo: ANGLO AMERICAN
Isaac Regional Council is seeking reassurances from Peabody Energy after it bought Anglo-American’s Bowen Basin coal mines in Australia in a deal worth $5.85 billion.
Isaac Mayor Kelly Vea Vea says council is keen to learn more from Peabody Energy president and CEO Jim Grech about their plans for the mines at Moranbah and Middlemount.
“It’s encouraging to hear their global president emphasise a commitment to creating long-term value and strengthening their social license to operate,” she says.
Vea Vea says they have written to Grech asking for a meeting.
“We want to make sure that Peabody understands the community’s expectations and the importance of upholding the heart-and-soul investment in the communities that support them,” she says.
Vea Vea points out that over 24 years, Anglo American had funded the construction of infrastructure like water and housing and more recently in supporting childcare and medical services.
“It’s my council’s expectation that Peabody steps up to the plate when it comes to upholding standards set in community by Anglo American,” Vea Vea says.
“While workers will change shirts, (the) expectation is that Peabody will not leave Moranbah and Middlemount worse off with their ownership.”
Anglo American says the $7.54 billion boost in value they are expecting from the deal takes in the previous sale of their 33.3 per cent stake in Jellinbah, and two coal mines in central Queensland, for about $1.69 billion.
SALE DETAILS
Anglo American chief executive Duncan Wanblad says the move is part of their pivot towards copper, iron ore and crop nutrients.
“We are absolutely focused on delivering that strategy and unlocking the associated value as we streamline our cost structures and create a much simpler, more resilient and more agile business that will enable full market value recognition,” he says.
“All the transactions to deliver our portfolio transformation are well in train – the demerger of Anglo American Platinum is expected by mid-2025 and we have seen strong interest in our nickel business with the sale process well progressed.”
The final sale price will depend on resuming production at the Grosvenor mine, near Moranbah, which has remained sealed since a fire in June.
Resumption of production will add another $385m to the sale price with another $307m to follow on the second anniversary of its reopening, the company says.
Grech said they were “pleased” with the purchase.
“We look forward to integrating these assets, teaming up with their highly skilled workforce and aligning with our new mine joint venture partners to create long-term value.”
