Peabody, Coal India in Talks for ‘Long-Term’ Supplies (Update2)

By Christopher Martin

April 12  -- Peabody Energy Corp., the world’s biggest coal producer, said it’s in preliminary talks with Coal India Ltd. over “long-term” supply agreements and potential cooperative ventures.

“These are at very early stages and there have been no final agreements or decisions made regarding timing or structure,” Vic Svec, vice president of corporate communications, said today in an e-mailed statement.

Peabody says India may be the fastest-growing importer of coal. The statement was in response to a story today on the Web site of the Sydney Morning Herald that said Peabody may be selling stakes in four mines to Coal India for about $1 billion.

St. Louis-based Peabody rose $1.66, or 3.6 percent, to $48.01 in New York Stock Exchange composite trading, the highest level since March 18. The shares have gained 69 percent in the past year.

Source: http://www.bloomberg.com/apps/news?sid=aqElr3_fWACo&pid=20601087

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