Business News

Peabody Energy Projects Lower Output Illinois Basin Coal Mines In 2019

Peabody Energy (BTU) is expecting an output of 17.5 million stones to 18.5 million stones at its Illinois basin coal mines in 2019, slightly lower than last year, as the coal company continues to deal with pricing issues, S&P Global Platts reported.

The company operates a number of smaller mines in southern Indiana and also oversees the largest surface mine east of the Mississippi River-Bear Run in Sullivan County, Indiana, according to the report.

Charlene Murdock, a spokesperson for Peabody, told S&P Global Platts that the company is “moving contracts between mines to deliver lower-cost products to meet seaborne demand.”

“While there is demand for our products in the Illinois Basin, pricing in some cases is not at a level that provides a clear return of our cost of capital,” she said.

The Peabody representative told S&P Global Platts that the decline in production will be felt “across several smaller complexes to optimize margins,” but did not identify the mines that will be affected.