https://www.miningweekly.com
Coal|Energy|Infrastructure|Mining|PROJECT|Resources|Underground|Equipment|Infrastructure
Coal|Energy|Infrastructure|Mining|PROJECT|Resources|Underground|Equipment|Infrastructure
coal|energy|infrastructure|mining|project|resources|underground|equipment|infrastructure

Peabody adds $109m to North Goonyella capex, acquires adjacent deposit

The North Goonyella mine in Australia

The North Goonyella mine in Australia

26th October 2023

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

US-based coal miner Peabody Energy has approved a further $109-million for capital expenditure (capex) at its North Goonyella mine, a hard-coking coal longwall operation in Australia, and agreed to acquire an adjacent coal deposit from Stanmore Resources.

The new capex estimate for the North Goonyella development project is $489-million, the company reported on Thursday, citing higher labour costs, equipment cost escalations and increased regulatory and development costs for the capital increase.

Since starting development in late 2022, Peabody has invested $75-million in the North Goonyella redevelopment.

The project remains on track to begin mining development coal in the first quarter of next year and begin longwall panel development.

“We made substantial progress on strengthening our metallurgical platform as we moved to the next stage of redevelopment at North Goonyella and agreed to acquire an adjacent coal deposit. The addition of this world-class coal deposit in the same seam as North Goonyella leverages our existing infrastructure and equipment,” said CEO Jim Grech.

The acquisition of a large portion of the Wards Well deposit represents an opportunity to extend the mine life of North Goonyella by more than 20 years through an integrated 130-million-ton mine plan.  

Peabody earlier this week agreed to acquire a portion of the Wards Well coal deposit from ASX-listed Stanmore for $136-million in cash and a contingency royalty of up to $200-million. Stanmore will retain the Lancewood tenement and the northern part of the Wards Well tenement.

Stanmore CEO Marcelos Matos said in a separate statement that through the transaction, the company continued to realise value from the assets acquired from BHP last year.

"The transaction achieves the monetisation of the Southern part of the Wards Well tenement which would unlikely be mined by Stanmore for many years and would be most logically mined via the existing Peabody North Goonyella workings. Furthermore, substantial high-quality hard coking coal resources will be retained in the Northern parts of the Wards Well tenement with the transaction providing optionality to minimise the start-up capital for the development pathway of Lancewood, before potentially moving underground into Wards Well North thereafter,” he commented.

Edited by Creamer Media Reporter

Comments

Showroom

Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 
Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine video image
Magazine round up | 01 March 2024
1st March 2024
Implats CEO Nico Muller
Implats expecting phased reduction in group output
29th February 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.186 0.221s - 127pq - 2rq
Subscribe Now