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Construction (L-R) Peter Shaw, Deirdre Schill, Jason Sharam, Joanne Sharam, Charmaine Ivey-Nemitz and Chris Nemitz (Linked Group Services) Stephen Bowers, Avenues of Highfields Port dragline Lyn Downing and Debbie Harding (both Techserve) (L-R) Frank Gilbert, Raj Guruswamy (Adani), Julianne Gilbert MP (Member for Mackay) and Garry Scanlan (Greater Whitsunday Alliance). Jason Kelly of Mackay Conveyor Equipment accepts the Chasing Foreign Markets Award from sponsor Helloworld Mackay and Mt Pleasant’s Mark Walter. Steve Beale and Chris Dunphy, MIPEC Suzanne Brown and Scott McSwann (McKays Solicitors) csg Aboutusgenericimage_3 (L-R) Mastermyne CEO and RIN Chair, Tony Caruso, was honoured on the night with the Tony Britton award for outstanding dedication and enthusiasm to the resource services sector. He was presented with the award by the late Tony Brit. St Vincent’s Private Hospital Toowoomba RObbie Falconer and Paula McDonald (L-R) Matthew Perre(Helloworld) , Stacey Cole, (Helloworld) Craig Wood and Debra Wood (SEW Eurodrive).
Construction (L-R) Peter Shaw, Deirdre Schill, Jason Sharam, Joanne Sharam, Charmaine Ivey-Nemitz and Chris Nemitz (Linked Group Services) Stephen Bowers, Avenues of Highfields Port dragline Lyn Downing and Debbie Harding (both Techserve) (L-R) Frank Gilbert, Raj Guruswamy (Adani), Julianne Gilbert MP (Member for Mackay) and Garry Scanlan (Greater Whitsunday Alliance). Jason Kelly of Mackay Conveyor Equipment accepts the Chasing Foreign Markets Award from sponsor Helloworld Mackay and Mt Pleasant’s Mark Walter. Steve Beale and Chris Dunphy, MIPEC Suzanne Brown and Scott McSwann (McKays Solicitors) csg Aboutusgenericimage_3 (L-R) Mastermyne CEO and RIN Chair, Tony Caruso, was honoured on the night with the Tony Britton award for outstanding dedication and enthusiasm to the resource services sector. He was presented with the award by the late Tony Brit.

Care and Maintenance
PEABODY flags plan to shut down Bowen Basin mine.
Wednesday 17 February 2016  

AUSTRALIAN and US coal miner Peabody Energy has announced it will put the Burton coal mine North West of Nebo into care and maintenance by the end of this year meaning the loss of around 300 jobs.

The company foreshadowed the closure this week, as it reported total losses of around $A2.6 billion due to historically low coal prices and production - particularly in the US where they have not enjoyed the benefit of a falling Australian dollar.

Despite the extremely difficult outlook overall for the company, it did report on some bright spots for their Australian operations.

Per unit costs fell to a new record low of just over $51 a tonne, which was enough to offset a $420 million dollar fall in revenue, due to the current low coal prices. This meant earnings from their Australian operations increased by $62 million in 2015.

Peabody produced nearly 36 million tonnes of coal at its Australian operations selling just under 16 million tonnes of metallurgical coal for $A104.85 per tonne on average. In addition, they sold 12.6 million tonnes of export thermal coal at around $A75 per tonne - with the remainder delivered under domestic thermal contracts (prices calculated on today’s exchange rate).

Peabody Energy President and Chief Executive Officer Glenn Kellow said they would continue to consolidate in 2016.

"Against a brutal industry backdrop, the Peabody team delivered a strong operating performance as we improved safety, achieved over $620 million in lower costs, further reduced capital, streamlined the organisation, and advanced multiple work streams to address our portfolio and financial objectives," he said.

"It is clear that more must be done, and we are taking further steps to confront a prolonged industry downturn by targeting additional cost reductions, advancing non-core asset sales, and pursuing aggressive actions to preserve liquidity and de-lever our balance sheet."  

Peabody acquired the Burton mine in April 2004, and in 2014 the mine produced 2.1 million tonnes of coal via its operations contractor Thiess who employed around 900 people.

However midway through 2014, Peabody slashed the mine's workforce by two-thirds as it responded to falling coal prices.

“The Burton Mine is Peabody's highest unit-cost operation, and production levels are not sustainable in the current market environment,” the company said at the time.

“Following negotiations with the contractor-operator, production levels are expected to be reduced to approximately one million tonnes per year, as the operation targets lower-cost reserves using reduced fleets of equipment.”


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