Coal giant looking to sell troubled mine

MINING giant Peabody wants to offload a white elephant that continues to face setbacks after a devastating underground fire in 2018.

In a fourth quarter and full year 2019 financial report to investors, the company stated it was considering a full sale of its North Goonyella coal mine at Moranbah.

Peabody announced job cuts at the site last October, after it was revealed it could take three years or more to restart production after the fire.

“Following a significant reduction in holding costs, Peabody is commencing a commercial process for its North Goonyella Mine in parallel with the existing and ongoing mine development plan,” the financial report said.

“The process comes in response to substantial expressions of interest in this valuable asset from potential strategic partners and other producers. Commercial outcomes could include a strategic financial partner, joint venture structure or complete sale of North Goonyella.”

Attempts to reach Peabody for comment were unsuccessful. Peabody last year said after a three-month review process, it had decided it would not attempt to access the mine beyond zone B due to the time, cost and regulatory approach required to ventilate and enter the rest of the mine.

This week, Peabody said discussions with the Queensland Mines Inspectorate regarding ventilation and reentry of zone B were ongoing.

The company continued to employ its North Goonyella workforce for more than a year despite the mine being out of production. Last year it was reported 94 workers would be made redundant. re