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21 Feb 2022 | 07:42

Anglo American restarts coal mining at Queensland's Grosvenor

(Sharecast News) - Anglo American announced the restart of its Grosvenor metallurgical coal mining operation in Queensland, Australia on Monday, following confirmation from state authorities. The FTSE 100 miner said it received confirmation on 16 February from Resources Safety and Health Queensland that longwall mining operations could now recommence, following a gas incident in May 2020.

It said following confirmation of the restart at Grosvenor, while export metallurgical coal production guidance for 2022 was unchanged at 20 to 22 million tonnes, due to the impact of Covid-19 in early 2022 and a later-than-expected restart of operations at Grosvenor, production was expected to be towards the lower end of that range.

As a result, it revised unit cost guidance for 2022 to around $85 per tonne, up from the previous guidance for $80 per tonne and compared to 2021 unit costs of $105 per tonne.

Anglo American cautioned that the figures remained subject to the extent of any further Covid-19-related disruptions.

"We have been working towards a safe restart at Grosvenor for several months and today we are up and running having received our regulator's approval last week," said Tyler Mitchelson, chief executive officer of Anglo American metallurgical coal.

"Over the past 18 months, we have worked with leading industry experts and invested significantly in automation technology, remote operations, gas management and data analytics, introducing a number of advancements in the way underground coal mines can operate.

"Nothing comes before safety and I thank our workforce, our local stakeholders and our customers for their patience and support as we bring Grosvenor back into production."

Separately on Monday, Anglo American reported the 2021 results for its platinum business, with adjusted EBITDA coming in at ZAR 108bn, which it translated to $7.5bn (£5.5bn) in its accounting.

A negative adjustment of $0.4bn for foreign exchange, corporate cost allocation and other items meant the contribution from Anglo American Platinum to group underlying EBITDA was an unaudited $7.1bn.

Anglo American said it would report its results for the year ended 31 December of 24 February.
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