US-based coal titan Peabody Energy has approved the expansion of the Gateway mine in Southern Illinois, which will extend the life of the operation by at least 16 years.
The company said that Gateway has an additional 280 million mt of reserves available for expansion in favorable market conditions. The project will advance underground operations north of the existing site and will increase annual capacity by 40 percent to 4.5 million mt within several years. Capital investments for the expansion are expected to total approximately $175 million.
"We are expanding Gateway to serve one of the fastest-growing markets in the United States. Its expansion demonstrates the strength of our leading reserve base to capitalize on long-term growth opportunities in high-demand, low-cost regions," said Gregory H. Boyce, Peabody Energy chairman and chief executive officer.
Licensing and mine engineering activities are progressing, and the initiative is subject to permitting and regulatory approval. Gateway has earned multiple state and national honors for safety, sustainability and good neighbor practices.
Gateway employs a workforce of more than 200 and shipped 3.2 million mt of coal to customers throughout the Midwest in 2009.