The company has filed an application with the Department of Planning for the proposed development of an additional longwall panel.
The company said that the project would extend the life of mine by six months, and will allow it to extract around two million tons of coal.
Peabody Energy stated that the production levels and employment at the mine will not be altered, reported ABC News.
The coal preparation plant would generate an additional 700,000 ton of reject material, which would be deposited within open cut voids at the mine.
Operating since 1969, Wambo is a combined surface and underground mine that produces thermal and pulverized coal injection coal products for domestic and export markets.
The open-cut sold 2.6 million tons of coal and North Wambo underground sold 3.5 million tons coal in 2013.
