“We are surprised that South32 and the ACCC reached an impasse, given both the physical synergies and the global nature of the metallurgical coal markets,” said Glenn Kellow, president and CEO, Peabody Energy. “On the other hand, we see continuing opportunities given Metropolitan’s quality coking coals and port location, and our objective will be to operate the mine while maximizing returns in the international marketplace.”

The Metropolitan mine, which exports coal from Port Kembla in New South Wales, sold 2 million metric tons (mt) of hard coking coal in 2016 and has approximately 26 million mt of proven and probable reserves. The mine employs approximately 250 employees and contractors.