Peabody Energy, the world's largest private-sector coal company, has entered into a sales agreement for its 62.5 percent interest in the Baralaba Mine in Australia with Cockatoo Coal Limited.

Peabody is being paid approximately US$ 33.6 million for its stake in Baralaba, which has approximately 1.5 million tons of remaining reserves and has produced approximately 330,000 tons of thermal and PCI coals in 2007.

Peabody has a strong long-term growth trend in Australia following major acquisitions in 2004 and 2006 and the development of three new mines in the past two years. Through September, the company has increased Australian production 15 percent in 2008 while overall industry growth has been limited to 3 percent.