Peabody Energy Expands Met Coal Portfolio with Tier-1 Acquisition and Centurion Mine Development

Released in Jan 2025:

Peabody Energy is making a significant push into the premium hard coking coal (PHCC) market with the $2.32 billion acquisition of Anglo American’s Tier-1 metallurgical coal assets, alongside the development of its Centurion Mine project in Queensland. The moves are set to double Peabody’s met coal production to 16 million tons annually by 2026.

Tier-1 Acquisition – Volume and Timeline

The acquisition, expected to close in Q2 2025, includes the Moranbah North, Grosvenor, Aquila, and Capcoal mines, with a combined production forecast of 11.3 million tons by 2026. Peabody plans to restore output at Moranbah North and evaluate Grosvenor’s restart, identifying $100 million in annual cost savings. Regulatory approvals from China, Brazil, and Slovakia have been secured, with final clearances pending. $2.075 billion in bridge financing is in place, with permanent funding expected at a leverage ratio of up to 1.5x EBITDA.

Centurion Mine – A Key Growth Driver

In addition to the acquisition, Peabody is progressing on its Centurion Mine, a 4.7 million-ton PHCC project with an estimated 25+ year lifespan. First longwall production is expected in 2026, leveraging $1 billion in existing infrastructure and a $489 million total capital investment. The mine's location in Queensland provides a freight advantage to India and Southeast Asia, key growth markets for steel demand.

Industry Impact

With these developments, Peabody is set to become a dominant high-quality metallurgical coal supplier, strengthening its position in the Asia-Pacific market. These moves align with growing global steel demand, particularly in India, and underscore Peabody’s long-term commitment to the sector.