Peabody Energy has agreed to sell its Wilkie Creek Mine and other associated assets in Queensland’s Surat Basin to Sekitan Resources, a wholly owned subsidiary of Exergen Pty, Ltd.
Peabody, which is the largest private-sector coal company in the world, said the transaction is worth approximately US$75 million, including cash of up to $20 million and assumption of liabilities totalling $55 million.
According to Peabody’s press release, the transaction also releases certain guarantees in place for reclamation activities, and is expected to close in the third quarter of 2015, subject to satisfaction of certain conditions.
Peabody acquired Wilkie Creek in 2002 and operated it until late 2013 when it shut down all mining operations on site due to a broad combination of lower market prices and higher costs.
Peabody Energy is a leader in coal production and reserve holder in Australia with a total of 11 operations in Queensland and New South Wales. The company is a global leader in sustainable mining and clean coal solutions serving metallurgical and thermal coal customers over 25 countries on six continents.
