Feb 08, 2019

Peabody expecting $US125m insurance payout over North Goonyella fire

Peabody expecting $US125m insurance payout over  North Goonyella fire

Peabody Energy has provided a market update on its North Goonyella mine following a fire late last year, with an expected insurance payout of $US125 million.

The company said it had identified a base case that targeted limited continuous-miner volumes in 2019 with longwall production beginning to ramp up in early 2020. 

It will set a multi-phased re-ventilation and re-entry project in motion this quarter.

“At this time, Peabody expects idling and project costs to average $30 to $35 million per quarter in 2019, with first quarter costs expected to come in above the high-end of that range,” the quarterly report states.

“The company is targeting approximately $110 million in capital for North Goonyella, including previously planned new longwall equipment.

“In addition, the company expects cash outlays associated with leased equipment settlements.  Peabody also is anticipating recovery of $125 million in insurance proceeds in 2019.”

Click HERE for the full report.

Recent Stories

Subscribe to IQ Now
Menu