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Peabody announces Twentymile Mine extension

Craig Daily Press Staff Report

Peabody Energy announced Monday an extension of its Twentymile Mine in Northwest Colorado, secured by 40 million tons in long-term coal supply agreements.

The Twentymile extension is being developed to supply coal to power plants, and industrial and export customers, including a 16-year agreement with the nearby Hayden Station.

The project involves developing the new Twentymile Sage Creek portal in the existing Wadge coal seam and moving the longwall, the company reported in a news release.



The new portal will access an additional 105 million ton northern reserve block of high-Btu, low-sulfur coal.

Permits are in place for development of the longwall panel, with development work expected to begin in May 2012.



Longwall production is anticipated in the second half of 2015. The capital investment for the extension is expected to total approximately $200 million.

“Peabody’s 9 billion ton reserve base allows us to serve long-term U.S. customer demand as well as emerging export opportunities,” Peabody Energy Chairman and Chief Executive Officer Gregory H. Boyce said in the release. “This project builds upon nearly a half-century of Peabody operations in Colorado and a valued customer relationship with the Hayden Station.”

Peabody’s Twentymile operation in Northwest Colorado created $730 million in direct and indirect economic benefits for the region in 2011.

The Hayden Station produces 446 megawatts of electricity with two units, serving more than 335,000 consumers in the state. It is operated by Xcel Energy, an investor-owned utility that provides electricity in seven other Western and Midwestern states.

Peabody Energy is the world’s largest private-sector coal company and a global leader in clean coal solutions.

With 2010 sales of 246 million tons and nearly $7 billion in revenues, Peabody fuels 10 percent of U.S. power and 2 percent of worldwide electricity.

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