New Metallurgical Coal Mine Targets 4.7 Mtpa Annual Production
Peabody Energy has begun longwall mining at its Centurion mine in Australia's Bowen Basin, two months ahead of the original schedule. The mine, located near Moranbah in Queensland, represents a significant expansion of Peabody's metallurgical coal platform with target average annual production of approximately 4.7 million tonnes at estimated costs of US$105 per ton over a 25-year-plus mine life.
Production Profile
- 2026 target: Originally 3.5 Mt, revised to 2.5 Mt due to temporary commissioning challenges
- Full run rate: 4.7 Mt per year targeted by 2028
- Mine plan: Expanded integrated mine plan of 140 Mt in the Goonyella Middle Seam
- NPV estimate: US$2.1 billion at US$225/mt benchmark pricing — up more than 30% from late-2024 estimates
Commissioning Progress
Longwall mining commenced in February 2026, ahead of the Q2 2026 original target. However, electrical and mechanical issues constrained cutting speeds and contributed to temporary roof condition challenges. Peabody implemented a comprehensive response plan focused on proactive strata management, targeted equipment optimisation, and deployment of additional technical resources. Full longwall production rates are expected throughout H2 2026, with the longwall move originally planned for Q4 2026 now expected in early 2027.
Market Position
Centurion's product quality and proximity to key demand nodes in Asia will result in full benchmark premium hard coking coal pricing. CEO Jim Grech stated that the mine immediately vaults to the top of Peabody's operations and establishes a multi-decade foundation for shareholder value creation. The company expects segment-wide met coal realizations to improve from approximately 70% of benchmark in 2025 to 80% in 2026 as Centurion reaches full scale. The mine represents years of strategic investment, including the renaming and rebooting of the former North Goonyella site.
