Peabody buys stake in Chinese coal importer

(AP) ST. LOUIS — Peabody Energy Corp., the world's biggest private-sector coal company, said Wednesday that it bought a 5.1 percent stake in a Chinese coal importer. China is the world's biggest coal market.

Financial terms for the stake of Winsway Coking Coal Holdings Ltd. were not disclosed.

Winsway is a major importer of coking coal for China's steel industry and is a top supplier of Mongolian coal into China.

Peabody currently operates a coal and uranium joint venture with Winsway in Mongolia. The two companies also recently reached a tentative deal to establish a joint venture to market coal in China and the Asia-Pacific region, Peabody said.

Peabody bought its equity stake by purchasing Winsway shares on the Hong Kong Stock Exchange.

The St. Louis company is also buying Australia's Macarthur Coal Ltd., a major producer of pulverized coal used by steel producers, for $5 billion. Peabody hopes to further expand Australia operations that send coal to customers in China, India and elsewhere in Asia.

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