TORONTO (miningweekly.com) – St Louis-based Peabody Energy has been unable to access the due diligence information it believes it negotiated with takeover target Macarthur Coal, CEO Gregory Boyce reported on Thursday.

“We would have expected to be at due diligence at this time, but that's not the case yet as we have not been granted access to the limited confirmatory due diligence information that we believe we had agreed to last week,” Boyce told analysts and investors on a conference call.

Peabody offered to buy Australia's Macarthur for A$13 a share late in March, and has sweetened its proposal twice, most recently to A$16 a share.

Macarthur rejected the initial two offers, saying that it would rather go ahead with a plan to buy Gloucester Coal from Noble Group.

But Noble shareholders voted against that transaction, and with some of its own shareholders indicating support for the Peabody offer, Macarthur said last week it would hold discussions with the US firm.

Macarthur has also turned down takeover overtures from fellow Australian New Hope Coal.

Peabody is still in discussions with Macarthur, he Boyce said.

“We are still hopeful of advancing the proposal to a successful conclusion.”

Macarthur is the world's biggest producer of low-volatile pulverised injection coal used for steelmaking, and has its operations in Queensland's Bowen Basin.

Peabody has coal mines in the US and Australia.

COAL INDIA

Boyce said that Peabody continues to hold a “broad range” of preliminary talks with Coal India on long-term coal supplies and other potential cooperation.

“While there have been no final agreements or decisions made regarding timing or structure, we believe India will be the fastest growing importer of coal through 2020,” he said.

“So it is, quite simply, a market we want to supply.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.