Mining company Anglo American has reduced its forecast for coking coal output this year after an underground fire at its Grosvenor coal mine in Australia. The fire, which started on June 29, has forced the company to stabilize the mine and re-establish gas monitoring before it can assess the steps towards a safe re-entry.
Anglo American said its copper production was almost flat in the first half of the year, rising 2% to 393,800 metric tons, and is on track to meet its full-year guidance. Copper demand is expected to rise sharply in the coming years for use in applications ranging from solar panels and electric cars to data centers for artificial intelligence.
However, the company has cut its output guidance for steelmaking coal to between 14 million tons and 15.5 million tons, down from the previous range of 15 to 17 million tons. The fire at the Grosvenor mine is likely to weigh on the company’s earnings, just months after it rebuffed a takeover bid from rival BHP Group.
Anglo American has put its five operating coal mines, development projects, and joint ventures in Australia up for sale as part of a wider plan to divest less profitable assets and focus on expanding copper output. Analysts say the timing and value of the planned sale of coal assets are now uncertain due to the impact of the Grosvenor mine fire.
The company stated that the mine has been stabilized, and it is now re-establishing comprehensive underground gas monitoring, prior to being able to assess the steps towards a safe re-entry into the mine. The assessment of the damage and re-opening is likely to take several months.