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Peabody Energy Enters Sales Agreement for Interest in Australia Mine

12/03/2008 - Peabody Energy enters agreement to sell its 62.5% interest in the Baralaba Mine to Cockatoo Coal Limited.

Peabody Energy has entered into a sales agreement with Cockatoo Coal Limited for its 62.5% interest in the Baralaba Mine in Australia.
 
Peabody will receive approximately US$33.6 million [A$52.5 million] for its interest in Baralaba, which represents a synergistic value to Cockatoo through its neighboring reserves. The mine has approximately 1.5 million tonnes of remaining reserves and produced approximately 330,000 tonnes of thermal and PCI coals in 2007. In recent quarters, Peabody has recorded Baralaba's financial results as a discontinued operation due to its held-for-sale status.
 
Peabody has a strong long-term growth trend in Australia following major acquisitions in 2004 and 2006 and the development of three new mines over the past two years. Through September, the company has increased Australian production 15% in 2008 while overall industry growth has been limited to 3%. The company is also the second-largest owner in the Newcastle Coal Infrastructure Group export terminal project under construction in New South Wales.
 
Peabody Energy is one of the world's largest private-sector coal companies, with 2007 sales of 238 million tonnes and $4.6 billion in revenues. Its coal products fuel approximately 10% of all U.S. electricity generation and 2% of worldwide electricity.