“During this period of rapid change and consolidation in the coal industry, it is only prudent to explore all our options to capture the full value of these resources,” said Peabody CEO Irl Engelhardt.

Peabody’s five coal mines in New South Wales and Queensland produce more than 20 million tonnes a year, but its main interests lie in the United States, where it fuels 9% of domestic electricity production.

Any sale of Peabody’s local coal mining assets may jeopardise Exxon’s planned sale of two NSW coal mines to Swiss group Glencore.

Peobody’s Moura operation in Queensland and the Bengalla and Warkworth mines in NSW are considered better propositions than the Lemington and Ulan steaming coal mines Glencore has shown an interest in.

Further muddying the waters are the key Japanese steel makers, including Nippon Steel, Mitsubishi and Mitsui, which have direct interests in the Moura, Bengalla and Warkworth operations, giving Anglo American an inside run in any contest for Peabody’s interests.

The Japanese steel mill owners, despite receiving a bloody nose for their trouble in backing Anglo American against Rio Tinto in its fight for North, are keen to head off any further expansion by BHP and Rio, which dominate domestic coking and thermal coal respectively.