Peabody Energy announced that it has
obtained an option to purchase up to a
50% interest in a joint venture holding
Polo Resources Ltd.’s coal and mineral
interests in Mongolia. Polo’s Mongolian
coal interests have potential resources of
more than 1 billion metric tons (mt),
with a majority of its coal licenses located
in the South Gobi coal region. This
region hosts some of the largest metallurgical
and thermal coal resources in
close proximity to China, with potential
to also access the Russian and export
markets. Polo also has an active mining
operation in Mongolia, with more than
100 employees on-site, primarily supplying
the domestic market.
Under the agreement, Peabody would
also be granted warrants to enable the
company to acquire an approximate 15%
equity interest in Polo. The transaction is
targeted to close during the first quarter
of 2009, subject to the completion of
Peabody’s due diligence review and other
approvals. Polo is an emerging energy
company focused on acquiring and developing
advanced stage coal and uranium
properties in Asia and Australia.
As featured in Womp 2009 Vol 02 - www.womp-int.com