Under the terms of the agreement, the Singapore-based 50/50 joint-venture company will supply thermal coal to Shenhua’s growing coal import demand from Peabody’s global production and coal trading platform.
Peabody Energy Asia and Trading president Christopher J Hagedorn said that the joint venture between the two companies marks a significant milestone in Peabody’s Asia growth strategy.
"Globally, Shenhua is one of the world’s largest importers of thermal coal and this important partnership will give Peabody a priority position to supply Shenhua’s growing import needs with coal from Peabody’s expanding global platform," Hagedorn added.
"Annual world coal demand is expected to grow by 1.2 billion tonnes in the next five years, with more than 80 percent of projected global demand growth in China and India," Hagedorn continued.
Scheduled to begin operating in 2014 following regulatory review, Sino-Pacific Coal Trading will source coal from key global supply basins to provide thermal coal for Shenhua’s Chinese generating subsidiaries.
China-based Shenhua Group is large-scale energy company and coal distributor, which takes coal as its foundation, covers electric power, railway, port, shipping, coal-to-liquids and coal-to-chemicals, and integrates production, transportation and sales.
Peabody provides sustainable mining and clean coal solutions as well as serves metallurgical and thermal coal customers in more than 25 countries on six continents.
