Peabody Energy and Xinjiang ink pact for 50 million tonne coal mine

Friday, 15 Jul 2011

Peabody Energy and the government of the Xinjiang Uyghur Autonomous Region entered into a framework agreement to pursue development of a state of the art 50 million tonne per year surface mine that would operate over multiple decades.

The agreement was signed during a ceremony in the Xinjiang capital of Urumqi with Peabody chairman & CEO Mr Gregory H Boyce, Peabody senior VP Mr Fredrick D Palmer, Peabody president of Asia Mr Zhenchun Shi and senior Xinjiang government officers. Party members involved in creating the agreement include Party Secretary Mr Zhang Chunxian, Governor Mr Nuer Baikeli and Vice Governor Mr Kurexi Maihasuti.

Under terms of the agreement, Peabody would construct, manage and operate the mine, which would be one of the largest surface mines in China, using best practices in safety, training, productivity, resource recovery, environmental standards and land restoration.

Mr Boyce said “Peabody is honored to work with the government of Xinjiang to advance a world class large scale surface mine in the world's largest and fastest growing coal market. Together we can unlock the full benefits of Xinjiang's vast energy resources to supply essential energy and benefit the region through job creation, economic development and social responsibility.”

The Xinjiang Region is China's largest administrative region with vast reserves of coal estimated to account for approximately 40% of China's reserves. The government expects Xinjiang's coal output will increase from approximately 100 million tonnes in 2010 to more than 1 billion tonnes.