Boston, MA 08/29/2014 (wallstreetpr) – According to reports, Peabody Energy Corporation (NYSE:BTU) is actively looking for alternative options for the sale of Wilkie Creek mine after the failure of former billionaire Nathan Tinkler in making payments. The estimated worth of this coal mine which is located in Australia is $70 million.
Why Tinkler Failed:
As per the information made public by Peabody Energy Corporation (NYSE:BTU), Tinkler will no longer be available to take part in selling procedure of shuttered mine. He wanted to acquire BTU through his Singapore-based Bentley Resources Ltd., but missed subsequent obligations for the closing. Although he made a non-refundable fees, details of which is not available.
What’s the reason of shutting Wilkie Creek Mine:
The last few years have been full of fluctuations especially for those working in the coal industry. The falling thermal coal prices due to less demand did not only put pressure on BTU to stop the operations, but also created a huge trouble for the people working in this industry. BTU bought the mine 12-years back to boost the sales of coal in Asian countries, but falling demand and increasing cost kept it always on its toes. When Peabody Energy Corporation (NYSE:BTU) was no longer able to bear the cost of the mine, it decided to shut all the operations immediately.
Who’s Tinkler:
Nathan Tinkler was awarded as the youngest billionaire of Australia in BRW magazine in 2011. At that time, he was just 35 year old. Although after that his wealth started declining due to continuous assets sales and court cases. BTU has not been doing good in share market for quite some time. It’s shares have fallen by 20% in this year.
No response was given to reporters by Peabody Energy Corporation (NYSE:BTU) management when they tried to get in touch over this issue. Meanwhile as per the information, all the workers of Wilkie Coal Mine were informed through messages that they didn’t have jobs anymore. It created a lot of tension among the entire workforce of the coal mine.
