The world’s largest private sector coal miner Peabody Energy has entered into an agreement with China’s Shenhua Group to create Sino-Pacific Coal Trading (SPCT). SPCT will be a Singapore-based 50/50 joint venture (JV) company.
Under the terms of the agreement, SPCT will supply thermal coal from Peabody’s global production and coal trading platform to meet Shenhua’s growing coal import demand.
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Peabody Energy Asia and Trading president Christopher J Hagedorn said that the JV marks a significant milestone in Peabody’s Asian growth strategy.
"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," Hagedorn said.
The company expects to begin operations this year, following a regulatory review.
"Annual world coal demand is expected to grow by 1.2 billion tonnes in the next five years, with more than 80% of projected global demand growth in China and India," Hagedorn added.
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By GlobalDataChina-based Shenhua Group is large-scale energy company and coal distributor, which also covers electric power, railway, port, shipping, coal-to-liquids and coal-to-chemicals, and integrates production, transportation and sales.
Peabody supplies to metallurgical and thermal coal customers in more than 25 countries across six continents.
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