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South32 buys Peabody's Metro Colliery

AAP logoAAP 2/11/2016 Lilly Vitorovich

Diversified miner South32 has agreed to buy the Metropolitan Colliery in NSW and a 16.67 per cent stake in the Port Kembla coal terminal in Wollongong from Peabody Energy for $US200 million ($A261 million).

South32 chief executive Graham Kerr says the acquisition is a "natural fit", and consistent with its strategy to invest in high quality mining operations.

"The mine's recently upgraded infrastructure and close proximity to Illawarra Metallurgical Coal will enable us to further optimise performance and unlock unique blending and resource synergies," Mr Kerr said in a statement on Thursday.

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