Peabody Energy (NYSE: BTU) Named Winning Bidder for 220 Million Tons of Powder River Basin Coal Reserves

ST. LOUIS, July 13, 2011 /PRNewswire/ -- Peabody Energy (NYSE: BTU) today announced that it is the winning bidder for the control of approximately 220 million tons of low sulfur coal reserves in the Powder River Basin of Wyoming.  

The winning bid for the reserves was $0.95 per mineable ton, made through a sealed bid auction process.  The company intends to add the "Belle Ayr North" reserve area to the assigned reserves related to the Caballo Mine, which had 2010 sales of 23.5 million tons and reserves of 822 million tons.  The new reserve block would extend the mine life, increase the average Btu of the mine, allow for increased mine production as demand warrants and enable greater mine optimization.  

The new reserve lease also extends Peabody's leadership in the United States' largest and most productive coal region.  Peabody controls 2.9 billion tons of Powder River Basin coal reserves, and is well-positioned to meet the strong expected long-term demand growth from the region.  The Powder River Basin continues to grow to serve new power plants and increased consumption from existing plants.  Powder River Basin coal also is in increasing demand for exports to fast-growing Asian markets.  

Peabody is the world's largest private-sector coal company and a global leader in clean coal solutions. With 2010 sales of 246 million tons and nearly $7 billion in revenues, Peabody fuels 10 percent of U.S. power and 2 percent of worldwide electricity.

CONTACT:
Vic Svec
(314) 342-7768

SOURCE Peabody Energy

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