Dawson mine is facing a workforce cut after falling coal prices sparked an Anglo American move to defer some production activities at the Bowen Basin site.

One shovel fleet, one excavator fleet and associated services will be suspended from this month.

The majority of the workers impacted are engaged through contracting companies.

In a statement today, the company said the changes were the result of deteriorating metallurgical coal prices as the COVID-19 crisis impacted markets in customer countries and economies.

“Dawson Mine sells a wide range of coking coal products, and to ensure the mine can respond to market circumstances, some ‘swing’ production activities that can only be economically justified at higher metallurgical coal prices will be deferred,” the statement explained.

The Dawson open-cut operation, in the Moura region of Central Queensland, employs more than 1550 people.

Chief executive officer of Anglo American’s metallurgical coal business, Tyler Mitchelson said it was important that the company take steps to ensure the mine’s ongoing viability in ‘the current challenging market circumstances’.

Grosvenor mine update – elevated gas levels

Underground is off limits at Grosvenor mine (pictured above) due to rising gas levels over the weekend at the Bowen Basin site, where five men were seriously injured in an explosion last month.

Longwall mining has been suspended since the May 6 incident, which remains under investigation.

Anglo American says this lack of mining activity elevates the risk of oxidation of the coal in the longwall goaf environment, and it has been closely monitoring various gas levels to ensure the safety and integrity of the mine.

“Consistent with our risk management protocols, we made the early decision to fully restrict access to the mine when levels of certain gasses started to rise as a result of the inactivity on the longwall,” Mr Mitchelson said.

“Over the past couple of days, we commenced a range of measures to stabilise the area. Once gas levels are proven to be stable, work will continue to ensure the ongoing safety and integrity of the mine.

“In the meantime, we will continue to keep our workforce closely updated.”