Anglo American suffered a setback yesterday after a US rival abandoned plans to buy its coal mines.
Peabody Energy said it was pulling out of its £2.8billion purchase of the London-listed mining giant’s Australian steelmaking coal business.
The US company blamed a ‘material adverse change’ in circumstances following an explosion at the Moranbah North mine in Queensland’s Bowen Basin.
The site has remained closed since March.
It comes as a blow to Anglo as it seeks to restructure having fended off a £39billion takeover bid from BHP.
Anglo boss Duncan Wanblad said he was ‘very disappointed’ and insisted the blast at Moranbah North ‘did not constitute’ a material adverse change.
Deal’s off: Peabody Energy said it was pulling out of its £2.8bn purchase of Anglo American’s Australian steelmaking coal business
Wanblad said ‘it would have been better for all parties to avoid a legal dispute’ but added the firm would ‘shortly initiate an arbitration to seek damages for wrongful termination’ of the deal.
BHP posted its lowest profits for five years as weak demand in China sent iron ore prices down.
Earnings fell 26 per cent to £7.8billion last year.
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