Anglo American says it is continuing to work with Peabody Energy over its coal business sale and making progress regarding the offline Moranbah North site.
Data and camera footage indicated no damage after what was believed to be a minor ignition in the underground area of the Bowen Basin mine on March 31, the company said.
Peabody announced this week that it was reviewing all options related to its acquisition of Anglo American’s steelmaking coal assets in light of the situation at Moranbah North.
Anglo American entered into agreements late last year to sell its Moranbah North, Grosvenor, Aquila, Capcoal and Dawson operations to Peabody in a $5 billion-plus transaction expected to close in the third quarter of this year.
Related: Peabody reviews Anglo coal deal options
In an update late yesterday, the company said it was continuing to work with Peabody towards satisfying the remaining customary conditions in the definitive agreements announced in November to complete the transaction.
‘Anglo American is also making progress in relation to the temporary suspension of mining operations at the Moranbah North mine following what we believe to have been a minor ignition in the underground area of the mine on March,’ the company said.
‘Conditions in the mine normalised shortly afterwards and they remain stable, with data and camera footage showing no evidence of damage.
‘Anglo American is working alongside industry experts and the safety regulator, Resources Safety & Health Queensland, to expedite re-entry into the mine and the subsequent safe resumption of mining operations.’
Related: Suspected explosion at underground coal mine
Mining and Energy Union Queensland president Mitch Hughes said Peabody’s statement that it was reviewing its options would create uncertainty at Moranbah North and other Anglo mines included in the sale.
“However, which multinational company takes the reins is ultimately of less concern than mineworkers’ safety standards, working conditions, and future employment,” he said.
“Just as we are working constructively with Anglo, we will work with future owners of these mines to protect our members safety and interests.”
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