Peabody Energy returns to Australia
23 Aug 2002
Peabody Energy announced today that it has acquired the Australian coal mining subsidiary of Mirant for approximately US$21 million (US$16 million net of cash).
Assets in the purchase include 680 million metric tonnes of coal resources and the Wilkie Creek Coal Mine near Macalister, Queensland.
The mine is expected to initially produce 1.3 million metric tonnes per year. The coal is exported via the Port of Brisbane to fuel electricity generation in Asia.
The purchase is said to mark a return by Peabody to Australia, where the company has operated for much of the past decade.
Peabody's existing coal trading office in Newcastle will serve as sales agent for the mine's output. The Australian operations will report to Ian Craig, group executive of Peabody's Powder River Basin operations. Craig was managing director of Peabody's Australian operations prior to their sale in January 2001.
