The U.S. Bureau of Land Management’s New Mexico State Office plans an Aug. 14 lease auction for a 640-acre tract of coal being sought by Peabody Natural Resources Co., a subsidiary of Peabody Energy (NYSE: BTU).
The tract is in McKinley County, N.M., and consists of all reserves recoverable by surface mining methods. It contains an estimated 9.2 million tons of recoverable coal reserves, occurring in five seams in the Cleary Coal Member of the basal Menefee Formation. The coal is ranked as subbituminous B or C coal. The estimated weighted average quality of all seams (as received) is as follows: 9,856 Btu/lb, 16.5% moisture, 13.2% ash, 36.9% fixed carbon, 33.4% volatile matter, and 1.32% sulfur.
The tract will be leased to the qualified bidder submitting the highest cash offer provided that the high bid meets or exceeds the fair market value of the tracts as determined by the authorized officer after the sale, BLM noted in a notice to be published in the July 10 Federal Register.
Peabody has two New Mexico strip mines, the nearby El Segundo and Lee Ranch operations.