Peabody Energy Corp. said today it will develop a large new coal mine in Indiana after signing long-term supply agreements totaling $6 billion.
The Bear Run mine will be located in southwestern Indiana, about an hour southwest of Indianapolis. It will be the largest surface mine in the eastern United States, St. Louis-based Peabody said.
Bear Run will begin operation later this year and produce 2 million to 3 million tons of coal in 2010. Annual output will ultimately reach 8 million tons and coal will be used to supply two large Midwest power plants.
Development of the mine will cost $350 million to $400 million over a period of several years, according to Peabody, the world's largest private-sector coal company.
To help finance development, the company has signed sales contracts for 90 million tons of coal from the mine with terms up to 17 years.
Source: St Louis Post-Despatch
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