JOHANNESBURG (miningweekly.com) – US metallurgical and thermal coal producer Peabody Energy has reached an agreement with three US states, namely Wyoming, New Mexico and Indiana, stipulating that Peabody would pay for coal-mine clean up liabilities, where the Missouri-based company has self-bonding obligations.
These agreements will enable the relevant state authorities to receive cash first up to the full amount of the company's $200-million bonding accommodation facility.
Self-bonding enables a company to operate mines without putting up sums of money or collateral for future site restoration.
Each state is entitled to a percentage of Peabody’s $200-million bonding accommodation facility based on a proportion of self-bonding relative to the company's total obligation.
Peabody's $800-million debtor-in-possession financing facility, which includes the bonding accommodation facility, provides financing for up to 18 months during the Chapter 11 process.
"We are continuing our actions to restore coal-mined lands using best-in-class practices, and we are committed to our reclamation as we have been for decades," said Peabody Americas president Kemal Williamson.
The company has also agreed to quarterly reclamation activity status meetings, as well as targeting reductions in the amount of bonds outstanding with the states.
Motions for the agreements are expected to be heard by a court in August.
Edited by: Samantha Herbst
Creamer Media Deputy Editor
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