Anglo American shares fell on Monday after the mining giant revealed it had suspended production at an Australian steelmaking coal mine.
The FTSE 100 firm, which also has a secondary listing on the Johannesburg Stock Exchange, told investors that production at the Grosvenor mine in Queensland would be suspended after an “underground coal gas ignition incident” on Saturday.
Anglo said the incident, which did not cause injuries to any workers, has caused damage that is expected to take “several months” to repair.
Anglo said the Grosvenor mine in Queensland would be closed for “several months”
The Grosvenor mine is expected to have produced more than a quarter of Anglo’s forecast 8 million tonnes of steelmaking coal in the first half of 2024.
Anglo expected to produce between 15 million and 17 million tonnes of steelmaking coal in all of 2024, of which Grosvenor was forecast to contribute around 3.5 million tonnes.
The miner said it will provide an update to its steelmaking coal production guidance “once more information becomes available.”
Anglo American shares fell 2.9 percent to 2,428.5 pence in early trading, having risen almost 25 percent since the start of the year on takeover speculation.
The Mail on Sunday, sister title to This is Money, revealed last month that Anglo had launched plans to slash investment in Britain’s biggest mining development – the Woodsmith fertilizer project near Whitby.
Up to 80 percent of the site’s 1,400 contractors could be affected in total.
The turmoil at Woodsmith is part of a strategy drawn up last month by Anglo chief executive Duncan Wanblad to help fend off a £39bn takeover attempt by rival BHP.
Wanblad also put Anglo’s coking coal business up for sale as part of its attempts to defeat BHP’s bid.
The group could also list its £7bn platinum division on the UK stock market after rejecting a final £39bn takeover offer from BHP.
