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Peabody Energy Chairman And CEO Calls For Australian National Commission On Resource Sector Competitiveness



 Peabody Energy Chairman And CEO Calls For Australian National Commission On
                       Resource Sector Competitiveness

PR Newswire

MELBOURNE, Australia, Oct. 25, 2012

MELBOURNE, Australia, Oct. 25, 2012 /PRNewswire/ -- Peabody Energy Chairman
and CEO Gregory H. Boyce today called for the establishment of a National
Commission on Minerals Sector Export Competitiveness to ensure Australia's
resource sector policies serve the long-term national interest. 

(Logo: http://photos.prnewswire.com/prnh/20120724/CG44353LOGO)

During a presentation to business leaders, public officials and media at the
Melbourne Mining Club, Boyce said Australia's federal and state governments
need to take a holistic approach to promoting the resource sector's
competitiveness and ensuring Australia is positioned to take full advantage of
opportunities presented by the Asia-Pacific region's large-scale urbanization
in the decades ahead. 

"Recent news of cutbacks and project cancellations across Australia's mining
sector can't be attributed solely to the global macroeconomic backdrop or
current pricing," said Boyce. "The fact is that inflationary pressures, a
strengthening Australian dollar, permitting delays and a barrage of additional
tax burdens at both a federal and state level have compromised Australia's
international competitiveness."

Boyce said a National Commission, comprised of representatives from federal
and state government as well as the private sector, should work together to
formulate a 30-year strategy to promote Australia's resource sector
competitiveness.

"In the coal sector, we undertake 'life of mine' planning – and we in
Australia also need to adopt the same long-term approach to protecting the
sustainability of the mining sector," said Boyce. "Federal and state
governments have assumed that plugging budget holes by placing additional tax
burdens on the resource sector would not affect its competitiveness, but a
steady stream of news on industry cutbacks has shown clearly that this is not
the case."  

"Extreme policies threaten to undermine Australia's role as a global resources
leader," said Boyce. "One of the immediate goals of a National Commission
should be to re-evaluate the Carbon Tax, MRRT and State Royalties and assess
their collective impact on the sector."  

Boyce said that with emerging competitors entering the global coal sector,
Australia would face a steep opportunity cost for failing to stay competitive.

"Five years ago countries like Mozambique weren't part of the global coking
coal conversation.  Today, Mozambique, Mongolia and Indonesia are seeing
opportunity and creating threats to what should be Australia's natural
advantage," said Boyce. "Despite current market headwinds, the long-term
fundamentals for coal remain strong and Australia has both the national
endowment and the geographical advantage needed to serve Asia's high-growth
demand centers – so long as we don't ignore the global laws of economic
returns."

Boyce noted that he first worked in Australia more than two decades ago and
had seen firsthand the Australian coal sector's extraordinary growth story.
Since Boyce joined Peabody in 2003, the company has been one of the fastest
growing coal companies in Australia with major coal acquisitions in 2004, 2006
and 2011 and multiple mine expansions.

"We are committed to Australia and its success," said Boyce. "It is now up to
Australia's leaders to take the action necessary to ensure that Australia's
coal sector retains its position as a global leader and continues to fuel the
nation's economy for decades to come." 

Peabody Energy is the world's largest private-sector coal company and a global
leader in sustainable mining and clean coal solutions. The company serves
metallurgical and thermal coal customers in more than 25 countries on six
continents. For further information, go to PeabodyEnergy.com and
CoalCanDoThat.com.

CONTACT:
Kirsty McDonald
(314) 342-7562

SOURCE Peabody Energy

Website: http://www.peabodyenergy.com
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