NEW YORK Coal producer Peabody Energy Inc. has slashed its 2013 capital expenditure plans by 50 percent to between $450 million and $550 million in order to pay off debt.
"The reason for the sharp decline in capital expenditures is due to a focus on preserving capital in order to deleverage the balance sheet by paying down debt," the St. Louis-based company said.
"We completed major growth projects in 2012 that do not require capital in 2013, and have pushed out the timing of other longer-term growth projects in order to focus on paying down debt," it added.
The majority of the companys capital spending in 2013 will be sustaining capital, with other minor expenditures related to owner-operator conversion at two mines in Australia.
The company may also divest noncore assets or properties to generate cash to help pay down its debt, it said.
A version of this article was first published by AMM sister publication Steel First.