St. Louis, MO, Nov. 2, 2005 — Peabody Energy announced that a subsidiary has acquired more than 100 million tons of high Btu coal reserves and associated mining facilities from Alcoa Fuels Inc., a subsidiary of Alcoa Inc., in Union and Webster counties in Kentucky.
The underground mineable reserves would be developed for the planned Dyson Creek Mine, which would produce up to 4 million tons of Kentucky No. 9 coal per year.
Development timing will be dependent on market conditions. The transaction includes the purchase of the Caseyville Dock on the Ohio River, in addition to rail loading and other mining facilities. Alcoa Fuels Inc. will receive a percentage of the mine’s production and production adjusted cash payments.