Under the deal, Peabody will construct, manage and operate the mine in Xinjiang, China, and will also conduct geologic, engineering and environmental reviews to select a final location for the facility.
According to the company, the Xinjiang government has committed to accelerate allocation of premier coal resources for the project.
Peabody said Xinjiang is China’s largest administrative region with vast reserves of coal estimated to account for about 40% of the country’s reserves.
Xinjiang’s coal output is expected to increase from about 100 million tonnes in 2010 to more than one billion tonnes.
