Peabody Energy, denied in a bid for acquisition in Australia recently, is still interested in expanding their holdings in the area in order to answer demands in the region and is also working at striking a deal with the Mongolian government, said Gregory Boyce, CEO of Peabody today.

In a coal industry press conference, Mr. Boyce replied, "We're still optimistic," when queried about Peabody's plans in the southern Pacific region.

Peabody Energy, which conducts mining operations mostly in the U.S., expanded Down Under, the number one coal exporter today, by absorbing Excel Coal Ltd for approximately $1.3 billion several years ago.

However, Peabody was rejected by Macarthur Coal last month, when it turned down the bid worth $3.5 billion.

Mr. Boyce did not disclose Peabody's plans in detail, but did remark on the stepping down of PM Kevin Rudd, who had infuriated the mining industry with a 40 percent tax proposition.

"It's amazing how quickly the political process unfolded in Australia," Mr. Boyce said in the conference.

"Australia will come up with something that will allow them to capture more revenue from their resources," he remarked. "The question is, at what level?"

Mr. Boyce also disclosed that Peabody is working on a possible expansion at Mongolia, which is also an area rich in coal and other minerals.

Mr. Boyce added, "China, Mongolia and India are our focus. Met (metallurgical) coal is at the surface, and mining risks are low," he said. "We see Mongolia as a place we want to be."

Peabody Energy's CEO also said that they are also looking into opening a port along the American West Coast for its Asian export operations.

-cg