Peabody looks to expand southern Ill. coal mine by 40 percent

Peabody looks to expand southern Ill. coal mine

ST. LOUIS — Peabody Energy says it expects to spend $175 million to expand one of its southern Illinois coal mines by 40 percent, if regulators sign off on the deal.

The St. Louis-based company, one of the world’s biggest coal producers, is looking to tap the additional 280 million tons of coal reserves it says exist at the Gateway Mine near Coulterville in Randolph County.

Peabody says the move will extend the mine’s life by at least 16 years, boosting the site’s annual capacity to 4.5 million tons within years.

Gateway has more than 200 workers and last year accounted for 3.2 million tons of coal shipped to Midwest customers.

The expansion is subject to permitting and regulatory approval.

Peabody fuels 10 percent of U.S. power and 2 percent of electricity worldwide.