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. Gateway has an additional 280 million tons 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% to 4.5 million tons 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,” said Greg Boyce, chairman and CEO, Peabody Energy.
“Gateway has earned a reputation as one of the safest and most productive operations in the Midwest. This expansion demonstrates the strength of our leading reserve base to capitalize on long-term growth opportunities in high-demand, low-cost regions.”
Licensing and mine engineering activities are progressing, and the initiative is subject to permitting and regulatory approval.