Peabody Completes Sale of Burton Mine To Lenton JV

Peabody Energy has completed the sale of the majority of its inactive Burton mine in Australia and its related infrastructure to the Lenton Joint Venture for approximately $11 million, subject to certain customary post-closing adjustments. In addition to the cash from the sale, the transaction reduces Peabody’s asset retirement obligation by approximately $41 million. The sale also provides for the release of approximately $30 million of restricted cash in support of such asset retirement obligation, which combined with the company’s recently announced revolving credit facility, is expected to free up approximately $300 million in cash.

Peabody placed the Burton mine on care, maintenance and rehabilitation in December 2016 and announced the sale of the mine in September 2017. The Lenton Joint Venture, of which New Hope Coal is a 90% participant, controls mining tenements that adjoin the Burton mine located in Queenland’s Bowen Basin.

As featured in Womp 2017 Vol 12 -