Right and Wrong of Coal Business Integration to be Judged by Administrative Trial

摘要

The administrative trial will start to judge the right and wrong of the coal business integration between Peabody Energy Corporation, USA and Arch Resources Inc. from the middle of August. As previously reported, Peabody Energy and Arch Resource announced on 19 June 2019 that both companies’ coal businesses in the Powder River Basin (PRB) and Colorado would be integrated. At this point of time, both companies decided to manage the coal businesses in PRB and Colorado on a conjoint basis through a joint venture company set up by making a joint investment. The investment in the joint venture company is in the proportion of 66.5% by Peabody Energy to 33.5% by Arch Resources. Peabody Energy is now running such 4 coal mines as (1) North Antelope Rochelle (NARM) coal mine, (2) Rawhide coal mine and (3) Caballo coal mine in PRB and (4) Twentymile coal mine in Colorado, for which Arch Resources is running (5) Black Thunder coal mine and (6) Coal Creek coal mine in PRB and (7) West Elk coal mine in Colorado, of which all of 5 coal mines in PRB are a leading large-scale open-cut coal mine in the U.S. and all the respective coal mines have a high productivity. The type of coal produced at these 5 coal mines is subbituminous coal which is sold as a fuel for electric power generation mainly to the electric power companies.