Anglo Suspends Production at Australian Steelmaking Coal Mine – by Paul-Alain Hunt and Victoria Cavaliere (Bloomberg News – June 30, 2024)

(Bloomberg) — A fire at Anglo American Plc’s biggest metallurgical coal project in Australia halted production, with the miner saying it may take months for it to be extinguished. Anglo, which is seeking to sell the mine as part of a turnaround plan, fell as much as 4%.

A methane explosion on Saturday caused the fire at the Grosvenor underground mine, which accounts for about 30% of the company’s annual production of coking coal in Queensland state, Anglo said in an emailed statement Monday. No one was injured.

The blaze may complicate the London-based company’s plan to sell its assets that mine the steelmaking fuel, after it rebuffed a $49 billion takeover by BHP Group. After the world’s biggest miner walked away in May, Anglo Chief Executive Officer Duncan Wanblad announced a radical overhaul and restructure of the business, with analysts anticipating a swift sale of the coal portfolio due to its relatively high value.

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