Coal Crisis: Anglo American Shuts Down Grosvenor Mine After Underground Incident

Anglo American (OTC:AAUKF) disclosed that its operations at its Grosvenor steelmaking coal mine in Queensland, Australia, were halted.

The move came after an underground coal gas ignition incident occurred on June 29. The company says they implemented all emergency protocols and safely evacuated the workforce from the mine without any injuries.

Due to the expected underground damage, these procedures are anticipated to take several months, states the company.

Anglo American’s steelmaking coal business anticipates producing approximately 8 million tonnes in the first half of 2024, with Grosvenor contributing around 2.3 million tonnes.

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For the entire year, the company expects production guidance of 15 to 17 million tonnes, with Grosvenor expected to contribute about 3.5 million tonnes.

Anglo American stated that lower production in the second half is due to a planned longwall move.

The company plans to update its steelmaking coal production guidance once more information is available.

Notably, in April, the company’s Steelmaking coal production rose by 7%, mainly due to higher output from Aquila and Capcoal, offset by lower production at Dawson and strata issues at Moranbah.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

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