Peabody eyes mining opportunity in northwest China
Written on June 24, 2009
Peabody Energy Corp. said it is considering an investment in a large new surface mine in the coal-rich Xinjiang Uygur autonomous region of northwestern China.
Purchasing a stake in the Shaxi mine, which is already being developed by the mining unit of Shaxi Lu’an Mining Co., a Chinese energy and chemicals company, would give Peabody access to a significant block of coal in the Xinjiang region, which contains 40 percent of China’s coal reserves, Peabody spokeswoman Beth Sutton said.
The mine’s annual production could exceed 15 million tons of coal, Peabody said. Coal will be shipped to power plants and industrial customers in central and eastern China on a rail line being developed by the Chinese government.
Peabody said the next step in evaluation of the project is to work with Lu’an on a study to evaluate requirements for the next phase of development florida health insurance. That could include tapping other Lu’an coal reserves in the region.
The potential structure of a venture with Lu’an hasn’t been determined, except that Peabody would serve as an operating partner in the Shaxi mine, Sutton said.
The agreement with Lu’an is the latest venture by Peabody to tap China’s fast-growing demand for energy.
Last year, the company announced a $2.5 billion project to develop a mine in Mongolia.
(Jeffrey Tomich)
Filed in: finance.