Peabody Energy, the largest U.S. coal producer, may face some delays in its plans to sell a 15% stake in an Australian mining project to Coal India for more than $600.
Both companies are mulling the formation of a joint venture company (JV) to implement the project at the Wilkie Creek coal mine, in Queensland, Australia, according to the Economic Times.
Missouri-based Peabody (BTU) would own 85% of the venture. Due to a rapidly economy, India has become one of the world's largest consumers of coal, a fact that has encouraged the country's coal producers to look for asset purchases and acquisitions as a way of expanding their global footprints.
Delays are related to regulations from the Australian government that may require the Peabody/Coal India joint venture to be a listed entity. The matter has been referred to Australia's coal ministry for certain clarifications, the Economic Times reported.
Peabody has the largest Australian footprint of any major U.S. coal company. The company sold 246 million tons of coal last year.
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