Peabody tells Illinois it can cover mine closing costs
ST. LOUIS (AP) — Financially troubled Peabody Energy told Illinois Attorney General Lisa Madigan it is "committed" to restoring land at its three coal mines in the state as a possible bankruptcy looms.
The St. Louis-based company on Wednesday responded to a Madigan demand for details on how it will pay the estimated $92 million for mine reclamation as it considers seeking Chapter 11 bankruptcy protection.
A Peabody attorney counters that its anticipated restoration costs are between $25 million and $30 million less than the state estimates.
Several environmental groups want state and federal regulators to stop allowing Peabody to use the process known as self-bonding instead of posting conventional bonds for mine remediation.
The alternative is purchasing surety bonds from private insurers.