Sep 06, 2017

Burton mine changes hands

Burton mine changes hands

Peabody has entered into an agreement to sell the majority of its Burton mine and related infrastructure in the Bowen Basin to the Lenton Joint Venture for about $14 million.  

The Burton mine was placed into care, maintenance and rehabilitation in December 2016. 

The transaction is conditional on a number of regulatory and other requirements and completion is expected to take place in the first half of 2018.  

The Lenton Joint Venture, of which New Hope Coal is a 90 per cent participant, controls mining tenements that adjoin the Burton mine. 

Peabody said the Lenton Joint Venture would assume the reclamation obligations associated with the assets, reducing Peabody’s asset retirement obligation by about $66 million while also releasing an estimated $30 million of restricted cash.

 

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