Peabody reduces production at Burton Mine in Australia Peabody Energy announced that it is reducing metallurgical coal production by approximately 1.5M tons per year from the Burton Mine in Queensland, Australia. The Burton Mine is Peabody's highest unit-cost operation, and production levels are not sustainable in the current market environment. Following negotiations with the contractor operator, production levels are expected to be reduced to approximately 1M tons per year, as the operation targets lower-cost reserves using reduced fleets of equipment. Peabody also reduced its annual average Australian cost estimate to the low $70 per ton range while raising Q3 financial targets. The company is reducing 2014 targeted metallurgical coal sales from the Australian platform by 1M tons to 15M-16M tons, with new Australian sales targets of 34M-36M tons.
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