Peabody Energy said today that it will invest $200 million in the expansion of its Twentymile Mine in Routt County.
The mine expansion is to help meet 40 million tons in long-term coal supply agreements, St. Louis-based Peabody said in a statement.
The mine has a 16-year contract to supply coal to the 446-megwatt Hayden Generating Station, which is jointly owned by Xcel Energy, Pacific Corp. and Salt River Project.
Xcel is the majority owner and operator of the plant.
“This project builds upon nearly a half-century of Peabody operations in Colorado and a valued customer relationship with the Hayden Station,” Peabody Energy Chairman and Chief Executive Officer Gregory H. Boyce, said in a statement.
The new portal will give Peabody access to an additional 105 million ton northern reserve , the company said. Development work is expected to begin in May.
The agreement “ensures an economic supply of coal to the Hayden Station to support the installation of new, state-of-the-art emissions control equipment, so that the plant can be operated beyond 2016,” Mark Stutz, an Xcel spokesman said in a statement.
Mark Jaffe: 303-954-1912 or mjaffe@denverpost.com
