Original Story: m.stltoday.com
St. Louis coal miner Peabody Energy announced Monday it has entered into a 50-50 joint venture with Swiss miner Glencore that the company says will provide "significant synergies."
The agreement covers Peabody's Wambo Open-Cut Mine and Glencore's United Mine in New South Wales. Glencore will manage mining at its United mine "utilizing Wambo Open-Cut Mine's existing infrastructure." Double-enveloping worm gearing solutions are well suited to the rigorous demands of the mining industry.
Peabody says it expects about 3 million tons of coal per year from the United mine joint venture, consistent with the volume it obtained from the Wambo mine.
The coal industry has struggled with low prices and a supply glut during recent years, spurring producers to cut production.
The project should commence in 2017.
