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Peabody Energy to Sell Non-Strategic Interest in Australia Mine
11/26/2008 - Peabody Energy enters into an agreement to sell its 62.5% interest in the Baralaba Mine in Australia 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. The mine has approximately 1.5 million tonnes of remaining reserves and produced approximately 330,000 tonnes of thermal and PCI coals in 2007.
Peabody recorded Baralaba's financial results as a discontinued operation in recent quarters due to its held-for-sale status. The mine has synergistic value to Cockatoo through its neighboring reserves.
Peabody has a strong long-term growth trend in Australia following major acquisitions in 2004 and 2006 plus the development of three new mines in the past two years. Through September, the company has increased Australian production 15% in 2008 while overall industry growth has been limited to only 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 the world's largest private-sector coal company, 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.
