HomeProduct Complimentary download Peabody cuts North Goonyella coking coal output by 1.36 mln T/y

Peabody cuts North Goonyella coking coal output by 1.36 mln T/y

Keyword:
Publish time: 5th June, 2015      Source: Platts
Information collection and data processing:  CCM     For more information, please contact us
US-headquartered Peabody Energy would cut production at its North Goonyella coking coal mine in the Australian state of Queensland by 1.36 million tonnes per annum, it said in a statement on June 4.“The modified production plan is designed to lower costs, improve cash flows and increase productivity while preserving high-quality hard coking coal reserves for sales when markets improve,” the company said.“Peabody expects production at the mine to decline to approximately 2.3 million tonnes this year from originally projected 2015 production levels of 3 million tonnes ”, the company said, adding that the current contract volumes would be covered.Peabody in March said metallurgical coal production from its Australian operations would total 15-16 million tonnes in 2015.An industry analyst said further coking coal production cutbacks were likely to be announced in the coming months as the market moved to correct the current oversupply of coal.“Australian coal prices will remain subdued while there is simply so much product available to the market,” the analyst said.“Further cutbacks are inevitable as the market works to correct the imbalance and only when this has happened will there be any meaningful change to the health of the coal sector both domestically and globally,” he added.Peabody has five other coal operations in Queensland: the Burton thermal coal, Coppabella PCI, Middle mount PCI and semi-hard coking coal, Millennium PCI and Moorvale PCI, coking and thermal coal mines.