Coal miner Peabody has completed its acquisition of Wards Well coal deposit immediately next to its Centurion mine complex in Queensland, Australia.
The transaction was with seller Stanmore Resources, and carried a cash price tag of $136 million as well as a contingent royalty of up to $200 million payable after recovery of the related project investment when coal prices exceed certain targets.
The deal is key to Peabody’s plan to extend Centurion’s mine life. The hard coking coal asset is currently developing an integrated 130-million-ton, 25-plus-year mine plan incorporating Wards Well. It first kicked off that redevelopment in late 2022.
Centurion is targeting a 2026 start for its longwall production.
Source: Peabody