Peabody Energy has entered an agreement to sell the majority of its Burton coal mine in Queensland to the Lenton joint venture for $US11 million ($13.7 million).
The Lenton joint venture – of which New Hope Coal owns a 90 per cent interest – controls mining tenements that adjoin the Burton mine.
The Burton mine, located in the Queensland Bowen Basin, entered care and maintenance in December 2016.
Peabody reduced production at the mine in 2014 due to falling commodity prices. At the time, the company said Burton was its highest unit-cost operation and production levels were not sustainable in the current market environment.
Production levels were reduced to around one million tons per year.
The sale of the mine, which includes related infrastructure, is subject to a number of regulatory approvals and is set to be complete in the first half of 2018.
Peabody Energy came out of Chapter 11 bankruptcy earlier this year following the weakened coal market. It has a renewed focus on “reducing debt, targeting high-return investments and returning cash to shareholders over time”.