12th May 2016 07:08
LONDON (Alliance News) - Anglo American PLC Thursday said it has delivered its first coal from the Grosvenor project in Australia seven months ahead of schedule and over USD100.0 million under budget.
The mining giant secured approval to develop the Grosvenor metallurgical coal mine within the Bowen basin of Queensland back in 2011, and has now managed to deliver its first coal from the underground longwall seven months faster than originally planned.
The project has also been commissioned for more than a USD100.0 million less than Anglo American's budget.
"We began the installation of the longwall just 24 days before its first shear and production of coal - a truly remarkable feat and a result of the team's technical expertise and the modular approach we have taken to our underground longwall operations in Australia," said Seamus French, chief executive of coal and iron ore at Anglo American.
Grosvenor, as it advances toward full capacity, will end up producing around 3.2 million tonnes of metallurgical coal this year and once it reaches full capacity, the longwall within the mine will produce 7.5 million tonnes a year at a cost of around AUD110.0 per tonne, equal to USD82.
"We look forward to shipping the mine's high quality product to our steel customers across Asia as production begins to ramp up in the months ahead. While Grosvenor may not fit Anglo American's strategic portfolio choices, its long term commercial attractiveness is beyond question," said French.
Anglo shares were down 1.7% to 606.90 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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