Peabody Energy Corp. (BTU) said Tuesday it has renegotiated an agreement with Polo Resources Ltd. (PRL.LN), establishing a partnership to mine Mongolian coal.
The St. Louis mining company, which first announced the deal in January, said it will contribute up to $25.8 million in cash to create a 50-50 joint venture for Polo’s Mongolian coal interests.
Peabody said Polo will contribute up to 1 billion metric tons of potential coal resources, subject to exploratory drilling. Peabody continues to hold warrants allowing it to acquire an approximate 15% equity interest in Polo.
Peabody, the world’s largest private sector coal company, is pushing to expand its reach into Asia’s coal markets, including China.