Peabody obtained 41 million tons of coal reserves in Kentucky and West Virginia and $US15 million in cash after it traded coal bed methane reserves to gas outfit CNX.
The Missouri operator said Monday the high-Btu reserves were made up of 27Mt in the Pittsburgh seam near the Federal No. 2 mine and 14Mt in the western Kentucky region.
“This transaction adds high-Btu reserves that will enable Peabody to double the remaining reserves and expected life of our Federal No. 2 mine in Northern Appalachia,” Peabody chief financial officer Richard Navarre said.
In addition to the Federal property, the company also operates mining complexes in the Powder River Basin, northern Appalachia, the Midwest US and Colorado. It sold 248Mt in 2006.
The resources being transferred by Peabody to CNX are located in the Powder River and Illinois basins, New Mexico and West Virginia and total 860,000 map acres. The company noted that no proven gas reserves are linked to the land.
