With this acquisition, the company will have 100% ownership of the hard coking coal operation.
The transaction, which is expected to close in the third quarter of 2011, will add an additional 165,000 to 275,000 tons of annual volumes to Peabody’s metallurgical coal portfolio.
The Burton Mine is undergoing an extension which will allow Burton volumes to increase by one million to two million tons annually in 2012, with operations continuing through 2016.
Peabody said it is targeting 35 million to 40 million tons of volumes from its Australian platform by 2014 to 2015, up from 27 million tons produced in 2010.
