Peabody Energy To Establish Joint Venture With Glencore For Aussie Mines

Peabody Energy (NYSE:BTU) has signed an agreement to establish a joint venture between its Wambo Open-Cut Mine and Glencore’s (NYSE:GLEN) United Mine in New South Wales, Australia. The partnership is excpected to help lower costs and expand the mine life for both operations.

As quoted in the press release:

The 50-50 joint venture will combine Wambo’s Open-Cut mining operations with United’s adjacent reserves in the Hunter Valley. Glencore will manage the combined mining operations utilizing Wambo Open-Cut Mine’s existing infrastructure, and Peabody will continue to operate coal washing and loading facilities. The project is anticipated to commence in 2017, subject to regulatory permitting. Peabody’s North Wambo Underground operations are not affected.

Peabody Energy COO, Glenn Kellow, said:

Peabody continues to take positive steps to further reduce costs, improve our competitive position and create value. This combined operation is expected to deliver substantial synergies to both parties while providing ongoing local employment opportunities and economic contributions.

Click here to read the Peabody Energy (NYSE:BTU) press release