Peabody Energy has entered into a new licensing agreement with Yanzhou Coal to install Longwall top coal caving (LTCC) technology at the Goonyella mine in Australia in order to improve metallurgical coal recovery.
The LTCC technology will allow 3.9Mt of additional hard coking coal to be recovered from the mine.
Peabody will work in collaboration with Yanzhou to ensure that the mine's workforce is fully trained and equipped to begin LTCC operations.
The LTCC equipment is expected to be placed in late 2012 and commence operations in the first quarter of 2013.
Peabody Energy's executive vice-president and chief operating officer Eric Ford said that the agreement will lead to greater resource recovery, enhanced productivity and extended mine life.