Peabody Energy has commissioned its second continuous miner at the Centurion project in Central Queensland and expects to ship first coal from the reborn site by the end of the year.

The Centurion operation is a reincarnation of the North Goonyella hard-coking coal mine, which was taken out of action by an underground fire in 2018.

It also incorporates a portion of the neighbouring Wards Well coal resources acquired in a deal with Stanmore Resources late last year.

In a project update, Peabody said Centurion remained on track to commence longwall production in the first quarter of 2026.

“Development at Centurion remains on plan, with initial underground development rates exceeding expectations,” Peabody president and chief executive officer Jim Grech said. 

“We reached first development coal in the second quarter and expect to ship to customers beginning in the fourth quarter of 2024.”

Peabody said it had spent about $US200 million – more than $300 million in Australian dollars – on the project as at June 30.

It is expected to take about $US489 million ($AU747 million) of capital expenditure to reach longwall production. 

Centurion is expected to have a mine life in excess of 25 years and average annual longwall production of 4.7 million tonnes. 

Peabody said the benchmark premium hard coking coal from Centurion was expected to receive a premium price relative to other metallurgical coals.  

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