Peabody Mine Purchase Dependent on Seller Completing Labor Pact

Sept. 21, 2018, 5:55 PM UTC

Peabody Energy Corp. agreed to buy an Alabama mine that produces coking coal for Asian and European steel mills for $400 million in cash from closely held Drummond Co.

The deal includes the mine, a preparation plant and supporting assets as well as an undisclosed amount of costs for reclamation, St. Louis-based Peabody said in a statement Sept. 21. The purchase, which is expected to close by the end of the year, is subject to regulatory approvals and conditions including the successful negotiation by Drummond of a collective-bargaining agreement with the union-represented workforce.

The acquisition will upgrade Peabody’s metallurgical coal ...

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