Peabody, Arch combine mining operations in Wyoming, Colorado

The companies say it will help them compete with natural gas, renewables.

Brian Kelly
June 19, 2019 - 12:04 pm
Peabody Energy Twentymile mine in Colorado

Peabody Energy

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ST. LOUIS (KMOX) — Two longtime St. Louis-based coal competitors are joining forces by combining their mining operations in Colorado and Wyoming.

Peabody Energy and Arch Coal are forming a joint venture with their Powder River Basin and Colorado assets, bringing together five of the country's 10 biggest coal mines.

The companies say the joint venture will create $820 million in savings and help coal compete with natural gas and renewable energies. 

In a video on the company's website, Peabody President and CEO Glenn Kellow talked about the effort, "The [joint venture] will combine two of the most productive US coal mines ... into a single complex. These mines are already next door neighbors, with a shared property line that goes on for more than seven miles."

The joint venture will be 66.5% owned by Peabody and 33.5% owned by Arch. Peabody will operate it.

The plan involves the North Antelope Rochelle, Black Thunder, Caballo, Rawhide and Coal Creek mines in northeast Wyoming and the West Elk and Twentymile mines in Colorado.

The mines employed about 3,300 workers in 2018. "All Peabody and Arch employees," Kellow says in the video,"will come together under the joint venture with total rewards, health and wellness benefits, compensation and safety practices closely mirroring Peabody's existing terms and conditions of employment."

The joint venture requires regulatory approval. 

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It is subject to regulatory approval.