Peabody to strip Queensland assets

As oversupply and low coal prices continue to erode profit margins, Peabody have suggested that they will strip back “non-core assets”, leaving the future unclear for each of their seven Queensland coal mines.

Peabody chief executive Gregory Boyce said that despite growing demand for coal, oversupply was keeping prices down, with contract prices already down US$23 per tonne for coking coal in the June quarter, to US$120 per tonne.

According to the Australian, Boyce said the growth would slow for the rest of the year on metallurgical coal exports, and that Peabody was “further evaluating the portfolio in recognition of the current environment.”

This strategy will include “targeting additional non-core asset sales".

Peabody owns the Burton, Coppabella, Eaglefield, Middlemount, Millennium, Moorvale and North Goonyella mines in Queensland’s Bowen Basin, and the Metropolitan, Wambo and Wilpinjong mines in NSW.

Late last year, Peabody shut down its Wilkie Creek mine near Dalby, Queensland, which resulted in the loss of 200 jobs.

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