Peabody Energy has confirmed this week that it has entered into a sale and purchase agreement with Sekitan Resources Pty, Ltd., a wholly owned subsidiary of Exergen Pty, Ltd., to sell Peabody’s Wilkie Creek Mine and other associated assets in Queensland’s Surat Basin.
The transaction has an aggregate value for Peabody of up to US$75 million including cash of up to $20 million and assumption of liabilities totalling $55 million.
The transaction also releases certain guarantees in place for reclamation activities. Closing is expected in the third quarter of 2015, subject to satisfaction of certain conditions.
Peabody purchased Wilkie Creek in 2002, and the mine ceased operations in 2013, because of falling prices for the power-plant fuel, which have extended their decline since then by about 29 per cent.