Peabody Energy said Tuesday it has entered into a renegotiated agreement to create a 50-50 joint venture holding Polo Resources Ltd.’s Mongolian coal interests for up to $25.8 million.
This option agreement supersedes the agreement announced in January, in which Peabody obtained an option to purchase up to a 50 percent interest in the joint venture for $73.2 million.
Polo's Mongolian coal interests have a potential resource of more than one billion tons in a region with some of the largest metallurgical and thermal coal resources in close proximity to the high-demand China and Asian markets. Polo has an active mining operation in Mongolia, with more than 100 employees on-site.
Peabody recently named D.L. Lobb its senior vice president of Mongolian operations.
Peabody has also been granted warrants to enable the company to acquire an approximate 15 percent equity interest in Polo Resources Ltd.
Polo, based in Road Town, British Virgin Islands, buys and develops advanced-stage coal and uranium properties in Asia and Australia.
St. Louis-based Peabody is the world's largest private-sector coal company. Its coal products fuel about 10 percent of all U.S. electricity generation and 2 percent of worldwide electricity.
Peabody is the world's largest private-sector coal company. Its coal products fuel 10 percent of all U.S. electricity generation and 2 percent of worldwide electricity.
Source: St Louis Business Journal
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