Peabody expands power capacity at Centurion mine

Peabody is expanding the gas-fired power station at its Centurion underground metallurgical coal mine in Queensland, Australia. The project will increase capacity from 5 megawatts to 20 megawatts, aiming to meet nearly all of the mine’s electricity needs through self-generated energy using gas captured from old mining voids.

Construction is expected to begin by the end of the year and is projected to create up to 60 jobs. The initiative is supported by the Queensland Government and project partner Carbon Logica. Peabody CEO Jim Grech stated the project would transform a mining by-product into a reliable energy source.

In its third-quarter results, Peabody reported that the Centurion mine achieved its target sales volume of 580,000 tons despite facing geological challenges. Increased geological complexity and problematic faulting impacted longwall performance in October, with production reaching approximately 45,000 tons for the month.

The company expects fourth-quarter sales volumes to be between 300,000 and 500,000 tons. To address production constraints, Peabody has identified engineering modifications, including a base-lift power increase and a two-stage flipper installation. The company also updated its full-year guidance, increasing expected export volume by 200,000 tons for seaborne thermal production while lowering seaborne metallurgical volume by 600,000 tons.