Peabody adds 90Mt to coal reserves

US COAL giant Peabody Energy has shored up its reserves, exercising an option to acquire Beaver Dam Coal, a major holder of coal reserves in western Kentucky.

Staff Reporter

St Louis-based Peabody said the deal adds more than 90 million tonnes of coal reserves and 22,000 surface acres in a region with the largest number of coal-fuelled plants in the United States.

"The land holdings will lower the cost structure of future mines to be built in the region and will strengthen the reserves position adjacent to Peabody's planned 1500 megawatt Thoroughbred Energy Campus," the company said.

Peabody, the world's largest coal company, has more than 8 billion tonnes of coal reserves. It fuels more than 9% of the United States' electricity and 2% of the world's electricity.