BlueScope halting its purchase of coal from Peabody's Metropolitan Colliery has emerged as a factor leading to the mine's shutdown for eight weeks from January.
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In recent years BlueScope has sourced up to 800,000 tonnes of coal per year from Peabody, accounting for about 25 per cent of BlueScope's annual coal needs.
The Mercury has confirmed the contracts have ended and have not yet been replaced. BlueScope wants a longer-term deal signed.
"We are aware of Peabody's decision to place Metropolitan Mine in care and maintenance until March next year due to weak market conditions," a BlueScope spokesman said.
"BlueScope are working with Peabody on a longer-term supply agreement that would see us continue to receive coal from the Metropolitan mine on a competitively priced basis, once they restart operations."
Peabody, a privately owned company from the US, declined to comment on contract details.
"We are continuing discussions with all our key customers to allow our mine to continue to operate during these challenging market conditions," a spokeswoman said.
Blaming poor market conditions, Peabody has also announced it would close down two of its Central Queensland mines for a month over Christmas.