Peabody to Sell Majority of Burton to Lenton

Peabody has entered into an agreement to sell the majority of its Burton mine and related infrastructure to the Lenton Joint Venture for approximately $11 million. Lenton will assume the reclamation obligations associated with the assets, reducing Peabody’s asset retirement obligation by approximately $53 million while also releasing an estimated $30 million of restricted cash.

The Burton mine, located in Queensland’s Bowen Basin, entered a care, maintenance and rehabilitation phase in December 2016. The transaction is conditional on a number of regulatory and other requirements. Completion is expected to take place in the first half of 2018. New Hope Coal holds a 90% interest in Lenton and controls leases adjoining the Burton mine.