A NEW ERA FOR QUEENSLAND COAL

ANALYSING PEABODY ENERGY’S ACQUISITION OF ANGLO AMERICAN’S STEELMAKING COAL PORTFOLIO AND WHAT IT MEANS FOR AUSTRALIA’S COAL SECTOR.

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While Newcastle coal futures reached an all-time high in September 2022 – reaching $US457.80 per tonne – they have been on a steady decline ever since, falling below $US120 per tonne to start 2025.

The commodity’s price has decreased for a variety of reasons, most notably the global shift from fossil fuel-based energy systems to renewable and low-carbon energy sources.

Of the two coal types, metallurgical coal is a valuable material for steel production and has an important role to play yet.

In developing nations, steel demand is expected to grow by 4.2 per cent in 2025, according to the World Steel Association, driving higher demand for coking coal.

These projections come as Peabody Energy begins the process of acquiring Anglo American’s steelmaking coal portfolio for up to $US3.775 billion ($6.09 billion).

How did this transaction come about and how will it shape Australia’s coal sector if it goes ahead? Australian Mining investigates.

It started when BHP put forward its second takeover offer to acquire Anglo in May 2024.

While the Big Australian didn’t end up making a formal offer to Anglo, the negotiation period saw Anglo reveal its asset breakup plan.