Peabody To Purchase Shoal Creek Metallurgical Coal Mine In Central Alabama

(RTTNews) - Peabody (BTU) announced it has signed a definitive agreement to purchase the Shoal Creek metallurgical coal mine from Drummond Company, Inc. for $400 million. Shoal Creek is located on the Black Warrior River in Central Alabama and serves Asian and European steel mills with high-vol A coking coal.

The company said Shoal Creek represents the next phase of its initiative to upgrade metallurgical coal platform. The mine adds approximately 2 million tons per year of hard coking coal sales that are expected to expand Peabody's met coal volumes and margins, with costs comparable to Peabody's average met coal range.