U.S miner Peabody Energy and China’s Winsway Coking Coal Holdings have announced they have entered into a joint venture agreement in Mongolia for mining coking coal in Mongolia.
The agreement, creating Peabody-Winsway Resources, follows Winsway’s purchase of the 50% interest in the joint venture formerly owned by Canada’s Polo Resources.
Winsway is one of the leading suppliers in China of imported high-quality coking coal and in particular, the largest offtaker of Mongolian coking coal in 2009.
It distributes and transports coal from Mongolia and other countries into China through its integrated service platform which includes logistics parks, coal washing plants, and road and railway transportation capabilities along the coast, rivers and inland borders of China, including Inner Mongolia.
Peabody-Winsway Resources holds coal and uranium licenses in Mongolia, and is conducting an active exploration programme in the South Gobi region and throughout Mongolia.
"We believe there are significant synergies combining Winsway's logistics capabilities as the leading Chinese importer of Mongolian coal with Peabody's leading global coal production and marketing position, creating an ideal platform to accelerate development of our Mongolian assets," said Peabody president and chief commercial officer Richard Navarre.
"We look forward to working with Winsway to further expand Mongolian coal exports into the high-growth China market, while also pursuing other growth opportunities."
