Jan 12, 2017

Burton shelved as Peabody sticks to plan

Burton shelved as Peabody sticks to plan

Peabody Energy says it remains committed to its Australian platform and the Bowen Basin, after confirming the completion of Burton coal mine’s shift to care and maintenance.

The company said the mine had gone into a care, maintenance and rehabilitation phase in December upon completion Thiess’s mining contract.

“This transition was initiated in 2014 with the scale-back of Thiess’ workforce over time,” Peabody Energy said in a written statement.

“Peabody is committed to its Australian platform and the Bowen Basin. It views its Australian platform as a core region where we are one of the world’s largest suppliers of high-quality seaborne coal for electricity generation and steelmaking.”

Peabody Energy Corporation, the world’s largest private-sector coal company, filed for bankruptcy protection in the United States in April last year.

In August, creditors approved a five-year plan that included scaling back production at Australian assets and Burton’s closure.

At the time, Peabody said it anticipated a smaller but more profitable Australian platform focused on high-quality products and/or top-tier assets to capitalise on higher growth in Asia.

“The business plan contemplates a reduction of metallurgical coal volumes over the five-year life of the business plan, assuming a strong Australian currency and no major uplift in product pricing,” it said.

Peabody’s Australian operations include Queensland’s North Goonyella, Millennium, Coppabella, Moorvale and Middlemount mines in the Bowen Basin as well as sites in New South Wales.