Thursday, 26 Jan 2012
US coal giant Peabody Energy has moved to capitalize on red hot demand for producing Australian coal mines, hiring UBS to find a buyer for its Wilkie Creek mine in Queensland state.
The mine, which produces over 2 million tons of thermal coal a year in the Surat Basin, is likely to interest North Asian buyers who already account for nearly all its exports.
Peabody acquired Wilkie Creek a decade ago, but sees it as non-core following its AUD 4.9 billion (USD 5.1 billion) takeover of Macarthur Coal last year. Macarthur’s mines are clustered in the Bowen Basin, so selling Wilkie Creek would allow Peabody to concentrate on its operations there.
The decision to sell Wilkie Creek, which has a resource of over 500,000 tons of thermal coal for use in power stations, was disclosed by Peabody in its full year earnings announcement Tuesday.
(Sourced from Wall Street Journal)
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