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Peabody cuts output and staff in Queensland

5th June 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – New York-listed Peabody Energy has announced plans to cut output from its North Goonyella mine, in Queensland, by some 1.5-million tonnes a year.

The modified production plan would see the mine transition to only one production shift a day, over the next month, and would result in a 35% to 40% reduction in employee and contract numbers.

The mine currently employs 519 people, including contractors, and production for 2015 is expected to decline from the three-million tonnes previously forecast, to about 2.3-million tonnes.

Peabody noted that the decrease in production was designed to lower costs and improve cash flows, while increasing productivity and preserving high-quality hard coking coal reserves for sale when markets improved.

The initiative was one of a range of measures the company was taking to improve the business across four key areas of management.

Edited by Creamer Media Reporter

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