Anglo American has suspended production at its Grosvenor steelmaking coal mine in Queensland, Australia after an underground coal gas ignition incident on June 29.
All emergency protocols were followed and the workforce was safely evacuated from the mine without injury, the miner said in a statement on Monday.
The mine team is working with specialist teams from the Queensland Mines Rescue Service and the regulatory authorities to extinguish the underground fire, before being able to assess the steps towards a safe re-entry into the mine.
These procedures are expected to take several months as a result of the likely damage underground, Anglo said.
Anglo’s steelmaking coal business expects to produce about 8-million tonnes of product in the first half of 2024, of which Grosvenor will contribute 2.3-million tonnes. For 2024 as a whole, production guidance for the steelmaking coal business is 15- to 17-million tonnes, of which Grosvenor was expected to contribute about 3.5-million tonnes, representing lower production in the second half of the year due to a planned longwall move.
An update to steelmaking coal production guidance will be provided once more information is available, it said.
In May, Anglo rebuffed rival BHP’s bid to buy it for the fourth time, and refused to extend the deadline for further negotiations.
Anglo had repeatedly said that the BHP bid, which required “two demergers and a takeover” — all of which would have needed competition clearance — would have imposed significant costs and risks on its shareholders.
Anglo’s restructuring plan, which it has fast-tracked in response to the BHP bid, will cause it to shed four of its businesses — platinum, diamonds, manganese and nickel — to narrow its focus on just copper, iron ore and fertiliser, as it tries to improve its performance and unlock value for shareholders.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.