The bid by Peabody Energy Corp. (NYSE: BTU) of $1.11 per mineable ton of sulfur coal was enough to land it control over 402 million tons of ultra low sulfur coal reserves located in Wyoming.
The leased tons are in Southern Powder River Basin in Wyoming, which is next to the North Antelope Rochelle Mine the coal giant operates.
Also close to the mine is the North Porcupine region which Peabody will bid upon in the second quarter. At this time the company 3.3 billion tons of coal reserves in the area.
With the Obama administration attack on the coal industry, it has put enormous pressure on coal companies, including Peabody, which closed Friday at $24.77, falling $1.19, or 4.77 percent. That's over a dollar below the 52-week low of $24.73.
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