Friday, July 2, 2010

Peabody Energy (NYSE:BTU) in Joint Venture with Winsway Coking Coal Holdings of China

Peabody Energy (NYSE:BTU) has entered into a joint venture with China's Winsway Coking Coal Holdings for mining of coking coal in Mongolia, according to Peabody. Coking coal is used to make steel.

The new company will be named Peabody-Winsway Resources. Winsway acquired the 50 percent interest which had been held by Canada's Polo Resources (TSE:POL).

A press release from Polo stated Winsway paid $15 million upfront for the stake, with an additional $20 million to be paid in stock or cash sometime in 2011.

The newly formed company holds uranium and coal licenses in Mongolia, and is actively involved with exploration in the South Gobi region of the country.

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