Peabody wins PRB reserve auction

PEABODY Energy has secured 220 million tons of low sulfur reserves in Wyoming’s Powder River Basin following a sealed bidding in a federal Bureau of Land Management auction held in the state this week.
Peabody wins PRB reserve auction Peabody wins PRB reserve auction Peabody wins PRB reserve auction Peabody wins PRB reserve auction Peabody wins PRB reserve auction

Courtesy Peabody Energy

Donna Schmidt

The reserves, known as Belle Ayr North, were purchased by the producer for US95c per mineable ton.

Peabody will add Belle Ayr North to its already assigned Caballo mine reserves totaling 822Mt. Sales from that property totaled 23.5Mt last year.

The new reserve block will extend the mine’s life and increase its British Thermal Unit average. It will also allow for increased mine production during times of market demand as well as enable greater mine optimization.

Peabody also extends its PRB footprint with the winning bid, expanding its position for expected long-term demand growth. It now controls 2.9 billion tons of reserves in the region.

“The Powder River Basin continues to grow to serve new power plants and increased consumption from existing plants,” the company said.

“Powder River Basin coal also is in increasing demand for exports to fast-growing Asian markets.”

The BLM held two previous auctions in May and June for the West Antelope II North and South coal tracts. Both were secured by winning bids from Cloud Peak Energy.

The last of four planned auctions, for the Caballo West coal tract, will be held on August 17 in Wyoming.

The offer for 1023.99 acres with an estimated 130Mt of reserves was offered in response to a Lease by Application filed by Caballo Coal Company.

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