NEW YORK (Associated Press) - Peabody Energy Corp., the world’s largest private-sector coal producer, said Thursday it signed a deal with Inner Mongolian officials to develop a large surface mine and build an associated coal gasification plant.

The open-cut mine will be located on a site with coal resources currently estimated to be as great as 3 billion metric tons. A more precise estimate will emerge from confirmatory drilling.
The majority of coal from the mine will be dedicated for fuel supply to the coal conversion plant, which will have an annual capacity of 1.2 million metric tons of methanol, or equivalent fuel and chemical production.
In the coming months, the companies will begin a feasibility study to examine the potential for the project. Peabody is also continuing discussions with major global chemical companies as project partners.
Shares closed down Wednesday $3.95, or 8.8 percent, to $41.05.

 

Source: Daily Business News Mongolia
Oct 5, 2008