Peabody to Cut Coal Output at Australian Mine

Peabody Energy Corp. plans to cut production of metallurgical coal by about 1.5 million tons a year in Australia, making it the latest supplier of the steelmaking raw material to reduce output in the face of depressed demand and prices.

Peabody, the largest U.S. coal producer, is taking the action at its North Goonyella mine in Queensland, the St. Louis-based company said Wednesday in a statement. The cutback will lower costs and improve cash flow, it said.

Teck Resources Ltd., the world’s second-largest exporter of metallurgical coal, said last week it will idle six Canadian coal operations.