The company said it has notified about 200 employees and contractors of the closure.
Peabody Energy Australia president Charles Meintjes said the company has completed strategic review of the mine and started the process of winding down operations.
"We are committed to minimizing the impact of the closure on our employees, their families and the local community, and we intend to work with employees regarding redeployment to other operations where possible," Meintjes added.
Reacting to Peabody’s move, Queensland Resources Council chief executive Michael Roche said the Wilkie Creek thermal coal mine closure is another disappointing turn in the fortunes of the export coal industry.
"It’s no secret that a number of mines in Queensland and New South Wales are walking a financial tightrope as a result of subdued global demand, inherently high production costs and a stubbornly high exchange rate," Roche added.
"Cost cutting is the only the mechanism available to coal companies to ride out the downturn that we estimate has cost more than 8000 positions in Queensland since mid-2012."
Peabody, which holds 11 operations in Queensland and New South Wales, serves metallurgical and thermal coal customers in over 25 countries.
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