Peabody said May 9 that the tenements, which include undeveloped and probable reserves, are Olive Downs South, Olive Downs South Extended, Olive Downs North and Willunga. The reserve total was as of the end of 2015.
Under the deal, Peabody has already received A$65 million ($47.6 million) in cash proceeds. Another A$22 million ($16.1 million) in cash is expected before the end of the third quarter once certain approvals have been received.
The remaining proceeds are related to the company’s sale of tenements held by the Coppabella-Moorvale Joint Venture (CMJV). They are subject to approval by the CMJV partners.
Pembroke Resources is under the umbrella of private equity firm Denham Capital.
Peabody officials said the divestiture was part of its overall portfolio management strategy that focuses on three core business priorities: operational, financial and portfolio. It said the reserves had not been assigned to active mining operations within its core Australia region.
According to company data, Peabody’s Australian operations sold 35.8 million tons of metallurgical and thermal coal in 2015, and controlled 861 million tons of reserves.
Peabody filed for Chapter 11 bankruptcy protection earlier this year. The producer’s Australian holdings are not included in that case.