The St. Louis-based coal company Peabody Energy has agreed to purchase Shoal Creek metallurgical coal mine from Drummond Co. Inc. for $400 million.
Peabody said Friday that the transaction is expected to close by the end of the year.
The Shoal Creek mine is on the Black Warrior River in central Alabama and serves Asian and European steel mills.
Peabody President and Chief Executive Officer Glenn Kellow says the purchase is part of Peabody's plan to upgrade its metallurgical coal platform. The company says the mine adds about 2 million tons per year of high-quality hard coking coal sales.
The Shoal Creek mine was developed in 1994 and employs about 400 people.
(Source: The Associated Press)