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