Peabody Energy announced that it has completed the acquisition of a 50% interest in Peabody & Polo Resources BV, a JV that holds Polo Resources Limited’s Mongolian coal interests. Peabody has committed to an investment of USD 23 million.
The JV holds coal licenses throughout Mongolia, with a significant number of licenses in the South Gobi region. Mongolia has substantial metallurgical and thermal coal resources that are strategically located to serve high demand China and Asia markets.
The JV will continue its exploration activities with the goal of identifying properties and projects that can be developed to serve these markets. Peabody continues pursuing multiple business development opportunities in Mongolia.
Peabody also maintains warrants to acquire an approximate 15% equity interest in Polo Resources Limited.
Peabody is the world’s largest private-sector coal company. Its coal products fuel 10% of all US electricity generation and 2% of worldwide electricity.
Polo is an emerging energy company focused on acquiring and developing advanced stage coal and uranium properties in Asia and Australia.