Peabody Energy has completed the sale
of the majority of its inactive Burton mine
in Australia and its related infrastructure
to the Lenton Joint Venture for approximately
$11 million, subject to certain
customary post-closing adjustments. In
addition to the cash from the sale, the
transaction reduces Peabody’s asset retirement
obligation by approximately $41
million. The sale also provides for the release
of approximately $30 million of restricted
cash in support of such asset retirement
obligation, which combined with
the company’s recently announced revolving
credit facility, is expected to free up
approximately $300 million in cash.
Peabody placed the Burton mine on
care, maintenance and rehabilitation in
December 2016 and announced the sale
of the mine in September 2017. The Lenton
Joint Venture, of which New Hope
Coal is a 90% participant, controls mining
tenements that adjoin the Burton mine located
in Queenland’s Bowen Basin.
As featured in Womp 2017 Vol 12 - www.womp-int.com