Peabody - Overview

WHO IS PEABODY ENERGY AUSTRALIA

Peabody Energy Australia Pty Limited is a wholly owned subsidiary of Peabody Energy, the worlds largest private-sector coal company. Peabody Energy Australia employs over 1000 people(i), with trading offices located in Brisbane and Newcastle.  

Peabody is targeting to expand its volume of Australian produced coal up to 35 to 40 million tonnes by 2014 (2010 figures)(ii) . Many Peabody mines are expanding across Australia, in attempts to serve the fastest-growing coal markets globally, which lie in Asia. The Peabody Energy Chairman and Chief Executive Officer announced in a June 2010 press release “Asian nations are forecast to account for more than 90 percent of global coal demand growth in the next two decades, and Australia will continue to build its position as the chief supplier of seaborne coal”(iii) .

WHERE IS PEABODY AUSTRALIA
Peabody Energy Australia currently owns 8 mining operations, five of which are in Queensland and three in NSW. The company has a history of both acquiring and starting new coalmines in Australia.

The company also owns 17.7% in the coal loading facility Newcastle Coal Infrastructure Group (NCIG), in Newcastle, Australia(iv).

Peabody In Australia – 1962 to 2012

  • 1962: The company initially entered the Australian market in 1962, developing Moura mine as the first major export mine in Australia(v).  Peabody sold out of all its Australian properties during company restructuring in 1977.
  • 1993: The company re-entered Australia with the acquisition of the Warkworth, Ravensworth and Narama (NSW) mines in 1993.
  • 1998: Peabody acquires the Bengalla mine in the Hunter Valley.
  • 2002: Peabody Energy returned to Australia in 2002 through acquisition of the Wilkie Creek mine.
  • 2004: RAG Australia acquisition
  • 2006: Excel Coal Limited acquisition, paying $1.52 billion for Excel. The acquisition included three operational mines and three development stage mines.
  • 2009: Peabody Energy owned Chain Valley Coal mine (NSW) from 2006 till 2009, acquiring the mine through its takeover of Excel Coal. Peabody lodged expansion plans in May 2009, however sold the mine later that year to LDO Coal Pty Ltd.
  • 2011: In late 2011, Peabody and ArcelorMittal purchased Macarthur Coal for approximately $5.2 billion(vi).


Lobbying in Australia
Peabody Energy is listed as a client for three lobbying firms on the Australian government’s register; including the firms Barton Deakin, CMAX Communications and Rowland(vii).  

Peabody Energy Press Releases

“Is the mining boom good for us?”
22nd February 2012
Strong public misconceptions surround the importance of the mining industry in Australia. Whilst research highlighted that the public thought mining was the most important industry above tourism and manufacturing, this is not true. In reality, tourism and manufacturing employ vastly larger numbers of Australian’s. Mining currently provides 200,000 jobs, whilst manufacturing has one million, and tourism has half a million.
Furthermore, mining in fact pushes up the Australian dollar, which destroys other industries such as manufacturing and tourism, as well as pushing up the cost of living. The higher costs of living is particularly prominent in mining areas. Read more: http://www.cqnews.com.au/story/2012/02/22/mining-is-booming-but-whats-really-in-it-for-us/

“Peabody Energy Approves Expansion Of Highly Productive Wilpinjong Mine In Australia”
27th June 2010
 The press release provides many foreword-looking projections for Peabody Energy Australia. Expansions of the company’s mining portfolios will result in an expected increase to Peabody’s coal production to 35 to 40 million tones by 2014. Such expansions are designed to build upon Peabody’s global capacity to serve rapidly growing coal markets in Asia.  Read more: http://conservation.newsarticles.net.au/Energy/Peabody-Energy-Approves-Expansion-Of-Highly-Productive-Wilpinjong-Mine-In-Australia.htm

“Future of Australian Coal: University of Queensland Releases Study”
29th October 2009
The report from the University of Queensland, commissioned entirely by Peabody Energy, investigates the important contribution Australia’s coal makes socially and economically to the nation. According to the report, maintaining the use of coal and clean coal technologies will be vital for Australia’s economic future. The report highlights Australia has 260 years of high quality coal reserves. Furthermore, global reliance on coal for electricity generation is forecast to be up to 38% by 2015, according to the report.  Read more: http://www.miningaustralia.com.au/news/Future-of-Australian-coal-University-of-Queensland

 
Further information

For a brief timeline of Peabody’s projects in Australia see:

http://www.peabodyenergy.com.au/general/peabody-history.html
http://www.australianminesatlas.gov.au/

 


REFERENCES

[i] Peabody Energy Australia 2012, corporate website, Available: http://www.peabodyenergy.com.au/general/about-peabody.html (accessed February 2012)

[ii] NewsArticles.net.au, 2010. Peabody Energy Approves Expansion Of Highly Productive Wilpinjong Mine In Australia,Media Release PR40574, 27th July 2010. Available: http://conservation.newsarticles.net.au/Energy/Peabody-Energy-Approves-Expansion-Of-Highly-Productive-Wilpinjong-Mine-In-Australia.htm (Accessed 4/2/2012)

[iii] NewsArticles.net.au, 2010. Peabody Energy Approves Expansion Of Highly Productive Wilpinjong Mine In Australia,Media Release PR40574, 27th July 2010. Available: http://conservation.newsarticles.net.au/Energy/Peabody-Energy-Approves-Expansion-Of-Highly-Productive-Wilpinjong-Mine-In-Australia.htm (Accessed 4/2/2012)

[iv] SourceWatch 2012, Available: http://www.peabodyenergy.com.au/general/about-peabody.html (accessed February 2012)

[v] Peabody Energy Australia 2012, corporate website, Available: http://www.peabodyenergy.com.au/general/peabody-history.html (accessed February 2012)

[vi] SourceWatch 2012, Available: http://www.peabodyenergy.com.au/general/about-peabody.html (accessed February 2012)

[vii] SourceWatch 2012, Available: http://www.peabodyenergy.com.au/general/about-peabody.html (accessed February 2012)