October 3, 2025 - Anglo American has initiated arbitration proceedings against Peabody Energy in response to the termination of a purchase agreement for the British mining giant's steelmaking coal assets, the US-based company said on Friday.

In August, Peabody withdrew its $3.78-billion bid for Anglo American's Australian coking coal assets, after two companies failed to agree on a lowering the price following a mine fire.

Peabody had agreed to acquire the mines in Queensland's Bowen Basin, the world's top steelmaking coal region, as Anglo moved to sell or spin off non-core assets following bigger rival BHP's failed takeover attempt last year.

Operations at the Moranbah North mine were halted in April after an underground fire caused by high gas levels. This prompted Peabody to invoke a clause allowing it to walk away or renegotiate if a major adverse event occurred between signing and completion.

Anglo had returned $29-million of the $75-million deposit due to Peabody, the US-based coal miner said, adding that the company has demanded repayment of the remaining amount "without further delay."