Underground fire forces production suspension at Anglo American coal mine
Global mining giant Anglo American has halted operations at its Grosvenor steelmaking coal mine in Queensland after an underground coal gas ignition over the weekend, prompting the evacuation of personnel to safety.
In a statement released on Sunday, Anglo confirmed that all employees have been successfully evacuated, with no reported injuries.
The incident has necessitated a comprehensive response involving specialised teams from the Queensland Mines Rescue Service and regulatory authorities. They are working to extinguish the underground fire and subsequently assess conditions for a safe re-entry into the mine.
The underground fire is expected to cause damage, delaying re-entry into the mine significantly, possibly by several months, Anglo stated.
The company added that it would make an adjustment to its steelmaking coal guidance once more information was available.
The steelmaking coal unit, which Anglo is looking to sell as part of its restructuring plan, is expected to produce about eight-million tonnes in the first half of 2024, with Grosvenor contributing about 2.3-million tonnes to this target.
For the full year, the company had set a production guidance of 15-million to 17-million tonnes for its steelmaking coal operations, with Grosvenor originally slated to contribute about 3.5-million tonnes.
Cited by newswire Reuters, JP Morgan analysts said that the incident could have negative implications for the timing and execution of Anglo's corporate restructuring plan and, therefore, future potential corporate outcomes for the group.
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