Peabody Energy to close Wilkie Creek Mine in Queensland

2026

Peabody Energy announced the imminent closure of the Wilkie Creek Mine in Surat Basin, Queensland, Australia by the end of 2013.

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Image credit: flickr User: oatsy40

According to the news release issued on Monday, around two hundred employees and contractors engaged in the mining operation have been duly notified of the company’s decision.

“We have completed our strategic review of the Wilkie Creek Mine, and we have begun the process of winding down operations,” said Peabody Energy Australia President Charles Meintjes.

“We thank the employees at Wilkie Creek for their hard work and dedication. We are committed to minimizing the impact of the closure on our employees, their families and the local community, and we intend to work with employees regarding redeployment to other operations where possible.”

According to a report on the Australian, the US coal titan has decided to close the mine and sack 200 workers because the carbon tax and other increases in costs have made the mine unprofitable in a time when coal prices are taking a serious dive.

Adertisement

“The decision to close Wilkie Creek has been made in response to a broad combination of lower market prices and higher costs,” a company spokeswoman said.

“Whilst the carbon tax was not a primary cause of the closure, it represents a substantial burden on an export-driven mine.”

Peabody sacked 600 workers from operations in Queensland and NSW earlier this year and told Wilkie Creek workers that the mine will be closed by the end of the month.

The company is now reportedly calling for voluntary redundancies and claims that it will try to relocate remaining workers.

Peabody Energy is a leader in coal production and reserve holder in Australia with a total of 11 operations in Queensland and New South Wales. The company is the largest private-sector coal company in the world and a global leader in sustainable mining and clean coal solutions serving metallurgical and thermal coal customers over 25 countries on six continents.

Layoffs and decisions to close loss making mines have become a hot topic these days since the price of coal has been spiraling down, spurred by the global oversupply due to low Chinese thermal coal prices.