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Thursday, 22 October 09
PEABODY SET TO TAP ASIAN DEMAND FOR COAL


The Australian reported that, US coal giant Peabody Energy plans to double its Queensland and NSW coal exports in the next five years, as it looks to tapgrowing demand from Chinese and Indian steel mills and power stations.

Peabody, based in St Louis andthe world's biggest non-government coalminer, said it was targeting Australian exports of up to 32 million tonnes in 2014,by building a new mine in Queensland and expanding three others.

The company is aiming to produce between 21 and 23 million tonnes of thermal and coking coal from Australia this year, of which about 6 million tonnes will be sold domestically to Macquarie Generation.

"Peabody is very well positioned to access the fastest-growing markets globally where we see shortages of metallurgical coal and growing strength in the Pacific thermal (coal) markets," Peabody president Richard Navarre said.

India and China were driving increased thermal and coking coal demand, the company said.

Peabody will concentrate on growing sales of coking coal, used to make steel, from about 6 million tonnes this year to between 12 and 15 million tonnes in 2014. Exports of thermal coal, used to fuel power stations, could grow from about 10 million tonnes a year to between 15 and 17 million tonnes.

Most of the growth is expected to come from the new Denham open pit mine, near Peabody's existing Eaglefield mine in Queensland. Denham is expected to produce between 3 and 6 million tonnes of hard coking coal a year from 2014.

The plan appears to be a step back from documents submitted to the federal environment department in January that said the company would produce an extra 9 million tonnes of coal from Eaglefield.

On top of Denham, Peabody plans to expand the Burton mine in Queensland to produce an extra 2 to 3 million tonnes of coking a coal a year.

In NSW, Peabody said it was looking at expanding the hard coking coal output of its Metropolitan mine by 1 million tonnes and its Wilpinjong mine by 2 to 3 million tonnes.
Source: The Australian



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