Reporting to executive Richard Navarre, Tahir will manage the company's business development in the country as well as organise its coal trading and marketing projects.
A graduate of NED University of Engineering & Technology, New York University's Stern School of Business and the Illinois Institute of Technology, he has been with Peabody since April 2006, when he was appointed senior vice-president of international development.
"Tayeb brings more than two decades of energy and business development experience to Peabody's China initiatives," Navarre said of Tahir, who joined the producer after holding positions with companies such as Zeigler Coal and Consolidated Edison.
"His high level of expertise in international business will add significant value as we work to build partnerships and increase our commercial presence in the world's fastest-growing market."
With China's rapid growth in coal usage, Navarre noted in the statement, this move is part of its strategy to leverage that growth potential in the longer term by collaborating on ventures with local organisations.
Peabody's Beijing office opened its doors in late 2005 and commenced trading there this year.