Printer Friendly

PEABODY COMPLETES $299 MILLION PURCHASE OF COSTAIN'S AUSTRALIAN COAL ASSETS

 NEW YORK, April 23 /PRNewswire/ -- David H. Clarke, deputy chairman and chief executive officer of Hanson Industries, the U.S. arm of Hanson PLC (NYSE: HAN), announced today that Peabody Holding Company, Inc., through a United Kingdom associate, has completed the purchase of Costain Group PLC's Australian coal assets for $299 million, including the assumption of debt and lease obligations. For the year ended Dec. 31, 1992, Costain's Australian coal operations reported operating profits of $34 million.
 Irl F. Engelhardt, chairman and president of Peabody Holding, said today, "The coal mines and reserves which Hanson has now acquired will allow Peabody Holding to implement its strategy of expanding its international customer base. Most of the production from these operations is shipped to Australian customers under long-term sales contracts, while the remainder is shipped to customers in the Pacific Rim, which is the fastest growing coal market in the world. The operations have an excellent management team, and I am pleased that Mr. Robert D. Humphris will join us as managing director of Peabody Resources Limited."
 Mr. Humphris has been managing the operations for Costain.
 Three operating surface coal mines and a new coal mine under development in the Hunter River Valley region of New South Wales, north of Sydney, are included in the transaction. Peabody Resources Limited, the new name of the principal Costain operating company in Australia, will manage all four properties and has interests in 100 percent of the Ravensworth Mine, 28.75 percent of Warkworth Mine, 50 percent of Narama Mine which just opened in January, and 25 percent of the Bengalla Mine development project. The other half of the Narama operation is owned by Renison Goldfields, which is 40 percent owned by Hanson PLC.
 The three operating mines are expected to ship about 8.7 million tonnes (Peabody Resources' share is 5.8 million) of steam and metallurgical coal annually, sold primarily under two long-term domestic contracts with Pacific Power, the New South Wales government's electricity utility. Peabody Resources' interests amount to about 663 million of the more than 2 billion tonnes of coal reserves and resources controlled in these properties. Also included in the transaction are interests in the coal port facility at Newcastle and a rail loadout at Mount Thorley.
 Peabody Holding had fiscal 1992 revenues of $1.8 billion from sales of 91 million tons of coal. Its subsidiaries operate 29 underground and surface mines in the United States. Peabody Holding's principal mining companies include Peabody Coal Company, which is headquartered in Henderson, Ky.; Eastern Associated Coal Corp., Charleston, W. Va.; Powder River Coal Company, Gillette, Wyo.; and Peabody Western Coal Company, Flagstaff, Ariz.
 Hanson PLC, which acquired Peabody Holding in 1990, is a British- American industrial management corporation. In the United States, Hanson Industries' operations include SCM Chemicals, Cavenham Forest Industries, Beazer, Grove Crane, Jacuzzi Whirlpool Baths, Tommy Armour Golf, Ames Tools, Farberware Cookware and Hanson Lighting Group, among others.
 In the United Kingdom, Hanson's holdings include Imperial Tobacco, ARC Aggregates, London Brick, Butterley Brick, Beazer Homes and Smith Meters.
 -0- 4/23/93
 /CONTACT: Mickey Foster of Hanson Industries, 908-603-6977/
 (HAN)


CO: Hanson PLC; Peabody Holding Company, Inc.; Costain Group PLC ST: IN: MNG SU: TNM

SH -- NY017 -- 9919 04/23/93 09:23 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 23, 1993
Words:544
Previous Article:KENNEDY-WILSON ANNOUNCES 1993 FIRST QUARTER RESULTS
Next Article:MORGAN PRODUCTS LTD. ANNOUNCES PROFITABLE FIRST QUARTER RESULTS
Topics:


Related Articles
PEABODY SUBSIDIARIES SIGN 20-YEAR COAL CONTRACT AND MINE PURCHASE AGREEMENT WITH AMERICAN ELECTRIC POWER
PEABODY SUBSIDIARIES SIGN 20-YEAR COAL CONTRACT AND MINE PURCHASE AGREEMENT WITH AMERICAN ELECTRIC POWER
HANSON UNIT TO BUY COSTAIN'S AUSTRALIAN COAL OPERATIONS
PEABODY EXPANDS COAL OPERATIONS WITH NEW WYOMING COAL LEASE
PEABODY HOLDING FILES LAWSUIT CHARGING COSTAIN WITH BREACH OF CONTRACT
FEDERAL COURT ENJOINS COSTAIN SALE
PEABODY RESOURCES ACQUIRES ADDITIONAL 15 PERCENT OF AUSTRALIAN COAL MINING JOINT VENTURE
PEABODY, EXXON SIGN PRELIMINARY AGREEMENT FOR PURCHASE OF WYOMING COAL MINES
Peabody Subsidiaries Sold to Coal & Allied Industires.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters