Coal mining giant Peabody Energy Corp has filed for Chapter 11 bankruptcy protection in the United States, but its Australian operations will continue as normal, Resources Minister Josh Frydenberg says.
Peabody, the largest coal producer in the US, warned in March it may have to seek bankruptcy protection because of poor economies in countries that import coal and other factors battering the coal industry.
Mr Frydenberg said the company's president in Australia told him on Wednesday about the US filing.
"He made very clear that no Australian entities are included in the filing and Peabody plans for their Australian operations to continue as per usual," the minister said in a statement.
Peabody has 10 mines in Australia and around 3500 workers including contractors. It is Australia's fifth largest coal producer.
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Mr Frydenberg said Peabody views Australia as a core region, with its access to higher-demand Asian markets.
The filing comes less than three months after another from Arch Coal, America's second-largest miner, which followed bankruptcy filings from Alpha Natural Resources, Patriot Coal and other miners.
Peabody makes most of its money by selling its coal to major utilities that power the US electricity grid.
New drilling techniques allowed US energy companies to free enormous amounts of natural gas, driving prices lower. The result of those plunging prices and changing environmental regulations has pushed major utilities to choose natural gas over coal to power grids.
