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.
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Exhibit 12
PEABODY ENERGY
Computation of Ratio of Earnings to Fixed Charges
(Dollars in Thousands)
<Table>
<Caption> Predecessor
Company
-----------
April 1, May 20, Year Year Nine Months Year Six Months
1998 to 1998 to Total Ended Ended Ended Ended Ended
May 19, March 31, Fiscal March 31, March 31, December 31, December 31, June 30,
1998 1999 1999 (1) 2000 2001 2001 2002 2003
----------- ----------- -------- --------- --------- ------------ ------------ ----------
Income (Loss) Before
Income Taxes and
Minority Interests...... $ 6,770 $ (534) $ 6,236 $ (7,398) $ 152,894 $ 29,000 $ 78,804 $ (41,556)
Interest Expense.......... 4,222 176,105 180,327 205,056 197,686 88,686 102,458 55,044
Interest Portion of
Rental Expense.......... 2,430 16,913 19,343 26,225 44,303 37,294 53,958 24,587
----------- ----------- -------- --------- --------- ---------- --------- ----------
Adjusted Earnings......... $ 13,422 $ 192,484 $205,906 $ 223,883 $ 394,883 $ 154,980 $ 235,220 $ 38,075
=========== =========== ======== ========= ========= ========== ========= ==========
Interest Expense.......... $ 4,222 $ 176,105 $180,327 $ 205,056 $ 197,686 $ 88,686 $ 102,458 $ 55,044
Interest Portion of
Rental Expense.......... 2,430 16,913 19,343 26,225 44,303 37,294 53,958 24,587
----------- ----------- -------- --------- --------- ---------- --------- ----------
Adjusted fixed charges.... $ 6,652 $ 193,018 $199,670 $231,281 $ 241,989 $ 125,980 $ 156,416 $ 79,631
=========== =========== ======== ========= ========= ========== ========= ==========
Ratio of Earnings
to Fixed Charges.......... 2.02 1.00 1.03 0.97 1.63 1.23 1.50 0.48
=========== =========== ======== ========= ========= ========== ========= ==========
</Table>
(1) For comparative purposes, we derived the "Total Fiscal 1999" column by
adding the period from May 20, 1998 to March 31, 1999 with our predecessor
company results for the period from April 1, 1998 to May 19, 1998. The
effects of purchase accounting have not been reflected in the results of
our predecessor company.