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Exhibit 12
PEABODY ENERGY
Computation of Ratio of Earnings to Fixed Charges
(Dollars in Thousands)
<Table>
<Caption>
Year Year Nine Months Year Year
Ended Ended Ended Ended Ended
March 31, March 31, December 31, December 31, December 31,
2000 2001 2001 2002 2003
--------- --------- ------------ ------------ ----------
Income (Loss) Before
Income Taxes and
Minority Interests...... $ (7,398) $ 152,894 $ 29,000 $ 78,804 $ (3,181)
Interest Expense.......... 205,056 197,686 88,686 102,458 98,540
Interest Portion of
Rental Expense.......... 26,225 44,303 37,294 53,958 49,627
--------- --------- ---------- --------- ----------
Adjusted Earnings......... $ 223,883 $ 394,883 $ 154,980 $ 235,220 $ 144,986
========= ========= ========== ========= ==========
Interest Expense.......... $ 205,056 $ 197,686 $ 88,686 $ 102,458 $ 98,540
Interest Portion of
Rental Expense.......... 26,225 44,303 37,294 53,958 49,627
--------- --------- ---------- --------- ----------
Adjusted fixed charges.... $231,281 $ 241,989 $ 125,980 $ 156,416 $ 148,167
========= ========= ========== ========= ==========
Ratio of Earnings
to Fixed Charges.......... 0.97 1.63 1.23 1.50 0.98
========= ========= ========== ========= ==========
</Table>