Peabody Energy (NYSE: BTU) is the world’s largest private-sector coal company that operates mines across the U.S. and Australia. In 2008, Peabody fueled roughly one-tenth of all U.S. electricity generation and more than 2 percent worldwide.^[1] The company owned majority interests in 30 coal mining operations located in the United States and Australia, and also owns equity interest in one Venezuelan operating mine.^[2] Peabody mines, prepares, and sells steam coal to electric utilities in the U.S. and operates metallurgical and thermal coal mines in Australia.^[2]

Global demand for coal remained weak in 2009, driven by low capacity utilization at steel mills and a fall in the demand for electricity. Of the major steel-producing nations, China is the only country outpacing prior-year steel production levels, with all other nations running 38 percent below 2008 on average.^[3] Weakening demand for coal and the economic contraction has an adverse effect on Peabody's sales volumes and revenues. Peabody has already realized 2 million tons of its previously announced 10 million tons of planned 2009 Powder River Basin production cuts.^[3]

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