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ST. LOUIS, Dec. 22, 2003 -- Peabody Energy announced that it has signed memoranda of understanding with RAG Coal International AG to purchase coal assets in Colorado and a 25 percent interest in a coal operation in Venezuela.
The purchase would include:
* The Twentymile Mine near Steamboat Springs, Colo. The highly productive longwall mine produces approximately 7.5 million tons per year of low-sulfur coal for electricity generators in the West, Southwest, Midwest and Mexico; and
* A 25 percent interest in Carbones del Guasare, S.A., a joint venture involving RAG, Anglo American plc and Carbozulia, a unit of the Venezuelan oil company PDVSA. Carbones del Guasare operates the Paso Diablo surface mine in northwestern Venezuela, which produces nearly 7 million metric tonnes per year of coal for electricity generation and steel production in Europe and North America.
The transaction is subject to a number of conditions and the negotiation of definitive agreements. It is expected to be completed in the first half of 2004.
Peabody Energy had 2002 sales of 198 million tons of coal and $2.7 billion in revenues. Its coal products fuel more than 9 percent of all U.S. electricity generation and more than 2 percent of worldwide electricity generation.
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