Peabody President, Asia and Trading, Christopher J. Hagedorn said the new 50:50 JV represents a milestone in Peabody’s regional growth. “Globally, Shenhua is one of the world’s largest importers of thermal coal and this will give Peabody a priority position to supply Shenhua’s growing needs,” said Hagedorn.
“Annual world coal demand is expected to grow by 1.2 billion tons in the next five years, with more than 80% of growth in China and India,” he added; subject to regulatory review, Sino-Pacific Coal is expected to begin operating in 2014, sourcing coal globally to supply Shenhua for its generating subsidiaries on the Chinese mainland.
Shenhua is China’s top coal company and the largest coal distributor in the world. Shenua covers electric power, railway, port, shipping, coal-to-liquids and coal-to-chemicals, and integrates production, transportation and sales. As of mid-Q4 2013, Shenhua had more than 65 million kilowatts of installed power generation capacity. St. Louis, USA-based Peabody Energy Corp. is one of the world’s largest private-sector coal companies serving metallurgical and thermal coal customers in more than 25 countries on six continents.