Aussie mines face challenges: Peabody

Peabody Energy says rising costs, the carbon tax, and lower coal prices are hurting its Australian mines.

In a guidance document Peabody lowered its expected earnings for the third quarter of 2012 but said production from its Australian sites would still grow.

“Targets reflect Australian conditions that include performance at contractor-operated mines, lower average realized pricing, a longwall move, timing of export shipments and the introduction of the carbon tax,” it said.

Peabody said higher production had in part made up for lower prices and rising costs, and in Australia it was targeting 2012 sales of 31 to 34 million tonnes, a 20 to 35 per cent increase on last year.

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