ST. LOUIS, Nov. 1 (UPI) -- Peabody Energy Corp., the nation's biggest coal company, has bought more than 100 million tons of coal reserves in the Illinois Basin.
The amount paid to Alcoa Fuels Inc., a subsidiary of Alcoa Inc., for the Kentucky assets was not disclosed, though part of Alcoa's compensation will come in revenues from the high Btu mines, Peabody said Tuesday.
The acquisition reflects Peabody's confidence the Illinois Basin holds immense promise as coal-based electric generators spend tens of billions on clean air technology, a spokesman said.
He also said the properties, which include the Caseyville Dock on the Ohio River, are near railway and maritime links to key midwestern and southeastern markets.
St. Louis-based Peabody Energy is the world's largest private-sector coal company, with 2004 sales of 227 million tons of coal and $3.6 billion in revenues.
Its coal products fuel more than 10 percent of all U.S. electricity and 3 percent of worldwide electricity.
