Peabody and Arch to merge Powder River Basin assets

PEABODY Energy, which owns several Australian coal mines, will dramatically increase its footprint in the US Powder River Basin through a joint venture with Arch Coal in a move that will strengthen the competitiveness of thermal coal against natural gas and renewables.

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Peabody and Arch to merge Powder River Basin assets Peabody and Arch to merge Powder River Basin assets Peabody and Arch to merge Powder River Basin assets Peabody and Arch to merge Powder River Basin assets Peabody and Arch to merge Powder River Basin assets

Peabody has the lowest-cost position among major Powder River Basin producers.

The JV, which would be 66.5% owned by Peabody and 33.5% owned by Arch, was expected to unlock synergies with a pre-tax net present value of approximately US$820 million, Peabody CEO Glenn Kellow said.