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Peabody to Close Wambo Underground Thermal Coal Mine in New South Wales

Coal News - Published on Wed, 27 May 2020

Image Source: Peabody Wambo Underground Thermal Coal Mine
mise margins.
Argus reported that US energy firm Peabody will close its 2.5 million tonne per year Wambo underground thermal and semi-soft coking coal mine in New South Wales in Australia to align production with weaker demand and offset the effect of lower coal prices. The firm will stop coal production from the underground mine for 59 days from 19 June, after high-grade thermal coal and semi-soft coking coal prices fell to four-year lows amid Covid-19 related falls in seaborne demand. It will continue some development work that could see the mine restart in mid-August.

The Wambo underground mine, which is in the Hunter valley region of NSW, sold 2.2 million tonne of semi-soft coking and thermal coal in 2019. The closure will not affect the 3. million tonne per year Wambo open-cut mine, which is combining with Switzerland-based mining firm Glencore's United mine to form the million tonne per year United Wambo joint venture. The United Wambo joint venture was formally created in October-December 2019 following government approval and joint production is due to start late this year. The joint venture will see operating costs temporarily rise in 2020 during the transition to the new structure, as well as incurring around $60mn in capital costs in 2020, at a time when most mining firms are focused on reducing costs to maxi

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Posted By : Yogender Pancholi on Wed, 27 May 2020
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