The transaction involves the purchase of Shoal Creek metallurgical coal mine, preparation plant and supporting assets, excluding legacy liabilities other than reclamation.
Peabody Energy Mining News
The company's own workforce is in charge of re-profiling the terrain using seven massive bulldozers.
Market rumours point at South32 as the most likely buyer, since the miner decided last month to ditch its $200 million acquisition of Peabody Energy’s coal mine in New South Wales.
The Perth-based miner has agreed to purchase 45 million shares of the Canadian junior at a price of $2.45 per share, or about 15% of Arizona Mining’s outstanding shares.
The miner said it was unwilling to take the steps required to satisfy Australian steel makers to get the approval of the transaction, which would have its major deal since spinning off from BHP in 2015.
Coking coal prices gained 86% to $283.10 a tonne this week, the biggest gain in four years.
The US largest coal miner is back.
Proposed recoveries for key stakeholders.
The company, however, has decided to stay away from thermal coal assets due mainly to uncertainties over demand linked to climate concerns.
The deal includes a 17% interest in the Port Kembla Coal Terminal, south of Sydney.
Peabody circulated a term sheet last week that implied the first lien debt would be impaired, prompting an organizational push, MINING.com has learned.
The coal giant also said it would review its assets in Australia to run a smaller but "more profitable" basis.
Alpha, which filed for bankruptcy in August last year, is scheduled to ask a federal judge Thursday to approve its exit plan despite objections to it.
Report claims that Walter Energy, Patriot Coal, Alpha Natural Resources, Arch Coal and Peabody Energy also allocated more than half a billion dollars for top executives salaries in decade before going bankrupt.
She is still trying to recover from her televised comments in March, when she said she would put coal companies and miners out of business.
Peabody's bankruptcy filing is one of the largest in the commodities sector since commodity prices began to fall in the middle of 2014.
"Substantial doubts" St-Louis-based Peabody Energy with history traced back to 1883 can continue as going concern after missing payment on $6 billion debt.
These mines accounted for more than one quarter of U.S. coal production in 2015.
The Dartbrook coal mine has been mothballed since 2006, when Anglo placed it in care and maintenance.
Peabody’s concessions came in response to a probe that found the company had not been forthright with investors and regulators about threats to its business.
Beleaguered U.S. coal producers were thrown a lifeline after the Supreme Court struck down the Obama administration’s rule on mercury and acid gases from power plants.
Both saw their stock collapse not just on these news, but also amid concerns that they will have to pay more for insurance that covers environmental damage.
The U.S. No.1 coal producer projects a much wider-than-expected loss for the current quarter.
While coal sales have shown some signs of a rebound, low natural-gas prices continue to pressure the fossil fuel demand and pricing.
No signs of production slowdown in major coal-exporting countries.