“The contract represents a major commitment between the largest PRB producer and the largest PRB customer,” said Greg Boyce, chairman and CEO, Peabody Energy.
“The bottom line is that this strategy is great for our customers, the environment and the state’s economy,” said Warner L. Baxter, president and CEO, Ameren Missouri. “With this approach, we will produce cleaner air, reduce the impact of stringent environmental standards on our customers, strengthen our state’s energy and economic future, and enter into a long-term contract with the leading coal company—Peabody Energy.”
In related news, Peabody Energy also recently announced it was the winning bidder for control of an additional 220 million tons of PRB reserves in Wyoming. The winning bid for the reserves was $0.95/mineable ton, made through a sealed bid auction process. The company intends to add the Belle Ayr North reserve area to the assigned reserves related to the Caballo mine, which had 2010 sales of 23.5 million tons and reserves of 822 million tons. Peabody now controls 2.9 billion tons of PRB reserves.