US coal company Peabody Energy is considering selling all or part of its interest in the North Goonyella coking coal mine in Queensland, Australia, after receiving substantial expressions of interest from potential buyers for the asset.
Peabody Energy said that it had started a commercial process for North Goonyella mine, which shipped 1.8mt of coking coal through Dalrymple Bay coal terminal in 2018.
“The process comes in response to substantial expressions of interest in this valuable asset from potential strategic partners and other producers,” the company stated.
Commercial outcomes could include a strategic financial partner, joint venture structure, or complete sale of North Goonyella.
The mine was temporarily closed after an underground fire in September 2018, and Peabody said it is currently in talks with the Queensland Mines Inspectorate about re-entering the idled mine.
Peabody Energy has formed a joint venture partnership with Glencore for the United Wambo operation near Singleton in the Hunter Valley coalfield of NSW, and together they are developing a new open-cut coal mine in the area.
Production from the new United Wambo open-cut coal mine is due to begin later this year, and Peabody is planning to spend US$60m in 2020 on developing the mine.
* The March edition of Australian Mining Review will investigate the global market for coal, focusing on the Central and North-East Queensland Coal region and Saraji, Sojitz and Coppabella mines in detail.
