MANAGEMENT

North Goonyella coming back to life

Australian mine had been idled since 2018 fire

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The longwall mine located 160km west of Mackay, which suffered a fire in 2018 that subsequently left the miner battling elevated gas levels, is targeting the early part of next year for the restart, it said in its recently released year-end earnings report.

The miner said it identified a base case that targets limited volumes this year by continuous miner, followed by longwall mining ramping up next year. The base case, it added, contemplates a sales outlook over about 2 million US tons (1.81 million tonnes) in 2020.

"As part of Peabody's recovery plan for North Goonyella, the team is executing a multi-phased re-ventilation and re-entry project targeted to commence in the first quarter 2019," officials said. "The stage-gate approach provides an opportunity to periodically re-evaluate progress, costs and investments."

North Goonyella first confirmed the fire incident last September, after which it suspended operations. To bring it back online, it said it is planning a capital spend for new longwall equipment, though it noted the expenditure was previously planned.

The met coal mine produces a mid-vol product, which it exports via the Dalrymple Bay terminal. It sold 2.9 million US tons (2.63 million tonnes) in 2017.

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