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Kallanish Kallanish

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May, 25th 2019

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DEC 04

Peabody to buy Shoal Creek mine in Alabama


US metallurgical coal supplier Peabody has agreed to buy the Shoal Creek seaborne coking coal mine in central Alabama for $387 million, Kallanish learns from a company release.

The mine is currently owned by private producer Drummond Company, which primarily serves the Asian and European seaborne markets.

In 2017, the mine produced 2.1 million short tons of coal, representing $387m in revenues and $160.8m in net income.

"We are very pleased to welcome the productive Shoal Creek workforce to the Peabody team," says Peabody Americas president Kemal Williamson. "Peabody looks forward to safely and quickly integrating the mine into our portfolio and benefitting from the experienced workforce and well-capitalised nature of the operation."

Shoal Creek has an estimated 58m st of proven and probable reserves, with at least the first 17m available with “... minimal anticipated capital requirements,” the company says.