Peabody Energy has come to a new licensing agreement with Yanzhou Coal Mining Co for the installation of its Longwall Top Coal Caving (LTCC) technology to enhance recovery of metallurgical coal at Peabody’s North Goonyella mine in the Bowen Basin, Queensland, Australia. Yanzhou is a subsidiary of Yankuang Group Co. Peabody estimates the new technology will allow the recovery of up to 3.9 Mt of additional high quality hard coking coal from the mine, with opportunities for future use in other areas. LTCC technology improves the recoverability of coal over traditional longwall mining methods, and will allow the operation to mine the full coal seam thickness of 6.5 m versus the conventional longwall mining method of 4.2 m. According to Peabody Energy’s Executive Vice President and Chief Operating Officer Eric Ford, “Our agreement will lead to greater resource recovery, enhanced productivity and extended mine life. It also advances another avenue in our growing Chinese collaboration.”

Peabody is the first company to sign a LTCC licensing agreement with Yanzhou. The equipment is expected to be placed into service in late 2012. Peabody will work with Yanzhou to ensure the mine’s workforce is fully trained and equipped to begin LTCC operations in the first quarter of 2013. Peabody’s North Goonyella shipped 2.5 Mt of high quality hard coking coal to steel producing customers in 2010.