Peabody sells Wilkie Creek coal mine

Peabody Energy has sold off its Wilkie Creek coal mine to Sekitan Resources, a subsidiary of Exergen.

The decision is the latest move by Peabody to inure itself against the current downturn in coal.

The mine was shuttered in late 2013, after the operation failed to sell, despite being on the block for more than 12 months, as falling coal prices hit the market.

Attempts to offload the mine to then solvent billionaire Nathan Tinkler in early 2014 also collapsed after Tinkler failed to make payments.

This latest deal sees Peabody sell the operation, as well as associated assets, for a total of US$75 million, made up of US$20 million in cash and assumption of liabilities totalling $55 million, Peabody said in a company statement.

The acquirer, Exergen, is  clean coal company, that uses ‘vertical autoclave technology’ to reduce emissions by dewatering high moisture coal.

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