Australia: Anglo American’s coking coal output tumbles 54% y-o-y in Q3CY’25 amid divestment, operational strain

• Higher output from Aquila’s longwall operation lends support
• Moranbah restart, Grosvenor re-entry mark recovery progress

Anglo American’s coking coal production plunged 54% y-o-y to 1.9 million tonnes (mnt) in the third quarter of calendar year 2025 (Q3CY’25), along with an 8% q-o-q decline, pressured by mine incidents, divestments, and strategic restructuring. The company continues efforts to stabilise operations while progressing its planned coal business exit.

Production hit by Moranbah incident, Jellinbah sale

Output dropped sharply following the March mine fire incident at the Moranbah North mine and the January 2025 completion of Jellinbah’s sale. The decline was further aggravated by mine sequencing constraints at Dawson and Capcoal open-cut mines. However, higher output from Aquila’s longwall operation helped cushion a deeper fall.

Operational milestones at Moranbah, Grosvenor

Moranbah North showed limited progress, with a structured remote restart underway ahead of transitioning to normal longwall operations. The Grosvenor mine achieved regulatory approval in August for its first-stage re-entry, a key milestone in recovery after critical safety preparations and re-ventilation work.

Shift in product mix, market challenges

The production mix leaned more heavily on hard coking coal, accounting for 81% of total Q3CY’25 output versus 74% a year ago. Anglo American’s price realisation fell to 88% of the benchmark level, reflecting weaker market sentiment.

Strategic exit, legal dispute with Peabody

Following Peabody Energy’s August 2025 termination of the coal acquisition agreement, Anglo American initiated arbitration, maintaining that the Moranbah incident does not qualify as a Material Adverse Change (MAC). Despite this, the company reaffirmed its commitment to divest its Australian steelmaking coal business and plans to restart the sale process soon.

Outlook

Anglo American remains focused on safe operational recovery at Moranbah and Grosvenor while maintaining supply stability from Aquila and Dawson. With steelmaking coal output halved and global coking coal prices subdued, the company’s divestment progress will be key to reshaping its future portfolio.