Staunch opponent of climate laws and science misses interest payment as global coal price slump continues
By Ed King
Peabody Energy, the largest US coal miner, has warned it could struggle to stay afloat and may look for bankruptcy protection.
In a submission to the US Securities and Exchange Commission, the company said it had missed a US$71.1 million interest payment and revealed it may default on its debt.
Peabody’s value has tanked due to a global slump in commodity prices, and a US switch from coal to gas for power generation.
Last year it posted $1 billion losses in the second quarter, resulting in a huge jobs cull and the acceleration of plans to sell three major coal mines.
— Joel Kenrick (@joelkenrick) March 16, 2016
The company has long proved a tough opponent to lawmakers intent on driving through tougher climate regulations in the US, stoking fears of a ‘war on coal’.
Last year the company’s then chief executive Greg Boyce claimed climate models were “flawed” and said coal had a long and bright future.
“The greatest problem we confront is not an environmental crisis predicted by flawed computer models, but a human crisis that is fully within our power to solve,” he added.