Anglo stops production at Australian steel coal mine

(Bloomberg) — British mining group Anglo American Plc has suspended production at its steel-making coal mine in Queensland, Australia, due to an underground fire, the company said.

Most read by Bloomberg

At the Grosvenor mine, emergency protocols were followed and all workers were safely evacuated following the “coal gas ignition incident,” the company said in a news release on Sunday. The fire, which broke out on Saturday, was still burning a day later, the company said.

According to Anglo American, it is expected to take several months to assess the damage and re-enter the mine.

Grosvenor is expected to contribute about a quarter of Anglo’s steel coal production in the first half of 2024. An update to the steel coal production forecast will be provided as soon as further information is available, the company said.

In May, Australia’s BHP Group decided against making a firm offer for Anglo, skipping the biggest mining deal in over a decade. The move increased pressure on Anglo’s CEO Duncan Wanblad to come up with a turnaround plan, and BHP was forced to look elsewhere for the copper growth that Anglo could have offered.

Most read by Bloomberg Businessweek

©2024 Bloomberg L.P.