Paso Diablo is a 6.5-7 million tonne per annum operation that exports coal for electricity generators and steel makers in North America and Europe.
Peabody said on a pro forma basis, the 2003 net earnings contribution for the 25.5% ownership would have been approximately US$8 million for the full year. The purchase is subject to certain conditions that, if fulfilled, would lead to an expected closing within the next several months.
The deal completes RAG Coal International's divestiture of its foreign mining operations. In May RAG sold its U.S. coal interests to a private equity consortium for US$1 billion.
