Anglo American (LSE:AAL) has suspended production at its Grosvenor steelmaking coal mine in Queensland, following an underground “gas ignition” incident last week (29 June), which continues to burn. 

The shut down has left about 1,400 jobs up in the air, with the company issuing a statement saying it expected the mine would not reopen for “several months” as a result of likely underground damage.

Anglo has confirmed it will pay workers until July 15, 2024. 

The company says all emergency protocols were followed and the team was immediately and safely evacuated from the mine without injuries. 

Grosvenor’s team is working with specialists from the Queensland Mines Rescue Service and the regulatory authorities to put out the underground fire, prior to being able to assess the steps towards a safe re-entry into the mine. 

This latest incident is the second serious safety issue to take place at Grosvenor, following a fire in 2020 which left five workers with severe injuries. 

Anglo American’s steelmaking coal business had expected to produce 8 million tonnes of product in the first half of this year, of which Grosvenor was expected to contribute 2.3 million tonnes. 

Anglo American is a global mining company focused on producing copper, nickel, platinum group metals, diamonds, iron ore, and steelmaking coal.

Write to Aaliyah Rogan at Mining.com.au   

Images: Anglo American