Full steam ahead for Centurion coal development

Peabody Energy's Centurion mine is ahead of its development schedule, with four continuous miners in coal production and two more coming online after mid-year, according to a quarterly update. The company exported its first coal from the Bowen Basin operation in December and is ramping up towards longwall production that is targeted to begin in March 2026. The December quarter also saw the company reach an agreement with Anglo American, which will see it take over the Moranbah North, Grosvenor, Aquila and Capcoal operations in the Bowen Basin. It already holds major stakes in the Middlemount, Coppabella and Moorvale mines in that region as well as Centurion. Peabody president and chief executive officer Jim Grech said it was hard to overstate the benefits to Peabody, both strategically and financially, from the ramp-up of Centurion as well as the agreement to acquire multiple premium hard coking coal mines from Anglo "We now have four continuous miners in coal in the Centurian southern district and expect two continuous miners into coal in the northern district in the third quarter," he told an investor briefing. "For 2025, we're looking at half a million tons of development coal from Centurion and a projected 3.5 million tons in 2026 when longwall production in the southern district begins. "I'm also pleased to report that Peabody's planned acquisition of premium hard coking coal mines in Australia from Anglo American is progressing well. "Since signing the agreement, we've been active on a number of fronts. We've received regulatory approval from several jurisdictions, advanced the contractual preemption process, started the permanent financing process and begun indepth integration planning. "We're now targeting completion of the acquisition next quarter, obviously subject to clearing the closing conditions." Peabody president and chief executive officer Jim Grech. Mr Gresch highlighted the strategic and financial aspects that made the transaction so appealing. "First of all, this positions Peabody as a leading seaboard met coal supplier. On a pro forma basis, we expect three-fourths of Peabody's EBITDA in 2026 to come from metallurgical coal. "This is also an acquisition that we believe is accretive to cash flows across all periods. The transaction boosts both coking coal quality, improving real reservations, and mine life - with averages of more than 20 years. Related: Anglo working towards Grosvenor mine re-entry "Geographically, we will have the logistics advantage of having most of our met coal production and sales in the Pacific Rim as global steel production continues to shift to Asia. "We are highly confident that there are some $100 million a year in synergies to be captured post-acquisition. "Finally, we believe that the strong cash flows of the acquired assets will accommodate continued shareholder returns and lead to a favourable re-rating of the stock. "From the acquired mines, we're projecting 11.3 million tons of saleable production in our first full year of ownership in 2026. "Since our November announcement (of the acquisition), our confidence in those numbers has only grown. "For example, a number of operational improvements are being implemented by Anglo, and as we speak, the new longwall at Moranbah North is being ordered." You may also like: https://industryqld.com.au/pembroke-secures-funds-for-olive-downs-expansion/

Full steam ahead for Centurion coal development

Industry Queensland

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