At issue is whether companies violated federal leasing law by paying royalties based on the coal's mine price, then selling it overseas at a higher price through affiliated brokers. Peabody said it was fully compliant with federal royalty rules.In November, Peabody announced plans to close a 400-worker southern Illinois coal mine, saying the operation was "unsustainable" due to the mine's failure to meet acceptable standards for safety, compliance and performance. Peabody said that site sold 2.2 million tons of coal in 2011, a sliver of the 250.6 million tons the company took to market that year.
Earnings Preview: Peabody 4Q Profits Seen Lower
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