Peabody Energy and Shenhua Group to create joint venture
Peabody Energy President – Asia and Trading Christopher J. Hagedorn said the new 50/50 joint venture between the two companies represents 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," said Hagedorn.
"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. Over the last decade, Peabody has been reshaping its global platform to better serve this high-growth region."
Subject to regulatory review, Sino-Pacific Coal Trading Corporation is expected to begin operating in 2014, sourcing coal from key global supply basins to provide Shenhua with thermal coal for its Chinese generating subsidiaries.
The Shenhua Group is the largest coal company in China and the largest coal distributor in the world. It is a large-scale energy company, 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.
As of the end of November of 2013, Shenhua had more than 65 million kilowatts of installed power generation capacity. ■