Coal news and updates

Peabody Sells Shuttered Australian Coal Mine

U.S.-based coal miner Peabody Energy Corp. has agreed to sell a shuttered Australian mine to a unit of Brisbane coal-technology company Exergen Pty. Ltd. after a lengthy hunt for a buyer, at a fraction of its original asking price.

Peabody valued the deal for its Wilkie Creek mine in Queensland state at up to US$75 million, saying Exergen subsidiary Sekitan Resources would pay cash of as much as US$20 million and assume liabilities totalling US$55 million. It sought more than US$500 million for the asset when it was first put up for sale in early 2012.

A sustained downturn in coal prices has led many investors to scale back exposure to Australian coal, either through closing mines or selling assets.

Peabody purchased Wilkie Creek in 2002, but the mine was closed in 2013 at a time when many coal producers were struggling to turn a profit. The company said it expects the deal to be finalized this quarter.

Exergen, a developer of "clean-coal" technology, is backed by companies including India'sTata Power Co. Ltd. (500400.BY) and Thiess, a division of Australia'sCimic Group Ltd. (CIM.AU), its website says.

source: http://www.nasdaq.com