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Peabody CEO Says China To Continue To Be Large Coal Importer

SYDNEY -(Dow Jones)- Chinese coal imports are set to continue to grow strongly for metallurgical as well as thermal coal as demand for electricity and high- quality coal increases, said Peabody Energy Corp. (BTU) chief executive Greg Boyce at a media conference in Sydney Friday.

"China turning net importer is a structural change. We expect Chinese rapid coal demand growth to continue for some time," said Boyce.

The U.S.-based coal miner, which has extensive operations in Australia, expects those operations to contribute 30%-40% of earnings over the next two years.

Peabody plans to double output from its Australian mines to 36 million tons over the next five years.

Boyce said he was concerned about the Australian government's proposed emissions trading scheme, or ETS, which he said unduly impacts underground " gassy" mines.

"Australia's is the only proposed ETS to include fugitive emissions from coal mines," he said, adding that the company's expansion plans in Australia may be scaled back depending on the eventual shape of the scheme.

-By Elisabeth Behrmann, Dow Jones Newswires;

61-2-8272-4689 elisabeth.behrmann@dowjones.com

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