PERTH (miningweekly.com) – Diversified miner South32 has warned that production from its Illawarra metallurgical coal operations in New South Wales is likely to be 10% below its previous guidance of 7.9-million tonnes, after operations at the Appin Area 7 and Area 9 longwalls were suspended.
The company said on Wednesday that elevated gas concentrations were recorded at Appin Area 7 earlier this week, resulting in staff being evacuated from the area.
The New South Wales Department of Planning and Environment has been informed of the incident.
Production at Appin Area 7 and Area 9 have now been suspended while an investigation into the incident is completed, with South32 telling shareholders that a revised forecast for the full year will be provided in due course.
However, the miner warned that the decrease in production is expected to translate directly to sales, given low inventory levels at the operation. A commensurate increase in unit costs is also expected.
Edited by: Creamer Media Reporter
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