Peabody, Coal India In Preliminary Talks On Cooperative Ventures

Peabody Energy Corp. (BTU) and state-owned Coal India Ltd. are discussing possible cooperative ventures as part of broad-ranging, preliminary talks, the companies said Monday.

In a joint statement, the companies said they're looking at long-term coal supplies, with Peabody seeing India as potentially the world's fastest growing importer. The two companies warned discussions are in the "very early stages," and no agreements have been reached or decisions made on timing or structure.

The Sydney Morning Herald in a report Monday quoted a top Coal India official saying the company is in "advanced stages" of negotiations on a $1 billion deal with Peabody that would give Coal India stakes in four Australia coal mines and other international assets.

Coal India is the single largest coal producer in the world and the largest corporate employer in India, according to its Web site.

St. Louis-based Peabody said the talks with Coal India are unrelated to other deals it's working on. The company is in the middle of making a takeover bid for Australian miner Macarthur Coal Ltd. (MCC.AU).

Peabody shares recently traded 4% higher to $48.19.

-By Mark Peters, Dow Jones Newswires; 212-416-2457; mark.peters@dowjones.com

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