P&M signs coal-production pact with Indiana company. (Pittsburg and Midway Coal Mining Co., Black Beauty Coal Co.)

P&M signs coal-production pact with Indiana company

Bracing itself for winds of change blowing out of Congress, an Englewood-based coal company is digging deeper into the low-sulfur coal business.

Pittsburg and Midway Coal Mining Co., a subsidiary of the Chevron Corp., has signed a letter of intent with Black Beauty Resources Inc. of Evansville, Ind., to form an equal partnership called Black Beauty Coal Co.

The joint venture will significantly expand both companies' reserves and production of low-sulfur coal, which plays a vital role in pending clean air and acid rain legislation.

The financial details of the transaction were not disclosed.

Low-sulfur coal emits less sulfur, one of the villains in the acid rain battle, and is used by major coal …