Reuters reported that the largest US coal miner Peabody Energy Corp has cut its capital budget for the year by USD 200 million at a time when US thermal coal demand remains weak.

Peabody now expects capital expenditure of USD 1 billion to USD 1.2 billion for the year.

Peabody said it expects Australian coal production to reach 45 million tonnes to 50 million tonnes by 2015 to 2017 as it completes a number of late stage projects. Peabody's coal output from Australia was 25 million tonnes in 2011.

US coal producers have been hurt as power companies increasingly switch to cheaper natural gas.

Source - Reuters

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