The longwall move is the latest challenge for the mine, which experienced an outburst in January and then had its planned US$200 million sale to South32 blocked by the Australian Competition and Consumer Commission.    

On an analysts’ conference call Peabody CEO Glenn Kellow downplayed the failure of the Metropolitan sale to go through despite the company being keen to reduce debt on its balance sheet.

“Whilst we’ll continually evaluate our portfolio, the renegotiation of Metropolitan increases our exposure to met [coal] in a higher pricing environment and provides an alternative to the Queensland rail system,” he said.

Lower production at the Metropolitan mine due to both the unexpected gas outburst and the beginning of the planned, extended longwall cost the company $9.4 million, according to a US Securities Exchange filing.

The gas outburst incident, which occurred on January 4 on the longwall face, resulted in the release of carbon dioxide and a significant amount of coal, which obstructed passage across the face.

No people were injured as a result of the incident.

Turning to the thermal market, Kellow said Peabody would continue to target thermal coal exports to capitalise on the strong markets. 

“While Peabody’s thermal coal volumes weren’t affected by Cyclone Debbie, the industry fundamentals remain tight and there still has been no resolution to the Japanese fiscal year thermal contract that typically takes place for shipments beginning April 1,” he said.

“We also achieved the milestone with approvals from the New South Wales planning commission…for Wilpinjong mine through 2023. 

“This is one of Australia’s best thermal mines and anchors what we believe is a Tier 1 integrated thermal portfolio.”