Micabil Mining Projects

Micabil derives significant revenues from the operation of open cut and underground coal operations. Joint production is targeted to begin late in 2020 and allow for optimised mine planning, improved strip ratios, enhanced quality and the potential to extend the life of the open-cut operations beyond 2040.  Costs will be temporarily elevated in 2020 as the mine transitions to the joint venture structure.  Peabody expects to spend approximately $60 million in capital expenditures in 2020 in connection with the joint venture.

To summarise Micabil derives significant revenue from coal production.

1) Underground

Underground  run-of-mine coal reserves are estimated at 143.3 million tonnes.

The mine was approved to mine underground up to 9.75 million tonnes per annum of ROM coal from the Whybrow, Wambo, Woodlands Hill and Arrowfie  seams

The life of these mines are until 1932 and beyond

 2) Open cut

United Wambo Joint Venture

The exploration program undertaken for the United Wambo Open Cut Coal Mine Project  has identified an additional coal resource of approximately 150 Mt within the target coal seams, within the proposed mining areas bringing the total targeted future coal resource to be recovered as part of the Joint Venture  to 176 Mt. The high quality of the coal to be mined will allow a range of coal types to be produced including export quality thermal and semi-soft coal which can be used for power generation and steel manufacturing. The life of this open cut mine will be to 2040 and beyond

Other Open Cut Operations

 The current existing and approved Wambo open cut coal mine adjoins the United operations, and was planned to produce up to 8 Mtpa of run of mine (ROM) coal up to 2017.  The combined Wambo underground and open cut operations, have approval to extract up to 14.7 Mtpa run of mine (ROM) coal, and to transport up to 15 Mtpa product coal via the approved train loading facility until 2025. Wambo has lodged a modification to development consent DA 305-7-2003, which includes an extension to the life of the open cut up to and including 2020, and an extension to the life of the underground operations to 2032.