Peabody’s North Goonyella underground coking coal mine is set to have its mine life extended to 2026.
The extension comes with the introduction of a new mining area, North Goonyella South. It will secure the jobs of more than 230 workers, many of which live locally.
Peabody’s Australian president George Schuller commented that Australia remains “the go-to place for hard coking coal across the globe”.
Located 160km west of Mackay in Queensland, the mine produces premium quality, high-strength coking coal. It is exported to global seaborne demand centres.
Peabody also has longstanding relationships with Indian steelmakers, whose demand for metallurgical coal has increased by 22 per cent over the last 12 months. India is set to overtake China as the world’s largest importer by 2020.
Queensland Resources Council chief executive Ian Macfarlane said, “The Indian steel story will continue to grow along with its urbanisation story.”
Recently, Peabody commenced its North Goonyella longwall, which is expected to complete in the third quarter this year.
The longwall move is expected to impact Peabody’s margins in the next quarter. However, the company said it will be partly offset by the increase in export sales of thermal coal, higher U.S. volumes and positive resource management results.
In 2017, Peabody sold 2.9 million tonnes (Mt) of coal from North Goonyella.
The NYSE-listed company manages 23 surface and underground mines across the U.S. and Australia.