China’s Shenhua Group Corp., the world’s biggest coal distributor, agreed to source imports of the fuel via a joint venture with Peabody Energy Corp. (BTU:US)
Sino-Pacific Coal Trading Corp., the Singapore-based venture, will begin operating in 2014 subject to regulatory approvals, Peabody said in a statement yesterday.
The venture will supply coal from Peabody’s production and trading operations to Shenhua’s electricity-generating units, said St. Louis-based Peabody, the largest U.S. coal miner.
Peabody rose 1 percent to close at $18.62 in New York yesterday. The shares have fallen 30 percent this year.
Peabody operates mines in the Powder River Basin coal region and the Illinois Basin in the U.S. as well as in Australia. It also has development projects in Mongolia and China.
To contact the reporter on this story: Sonja Elmquist in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Simon Casey at email@example.com