Australian South32's metallurgical coal production plummeted in the July-September quarter, due to the suspension of operations at its Appin mine, the company said Thursday in its quarterly report.
Its Australian coal mining business, Illawarra Metallurgical Coal, produced a total of just 494,000 mt in the September quarter, which is down 66% both year on year and quarter on quarter from 1.44 million mt, it said.
Metallurgical coal sales from the complex fell 77% year on year to just 403,000 mt in the September quarter, and tumbled 73% from the June quarter, the results showed.
The declines were due to the Appin mine being suspended late June, following concerns about elevated gas levels. It wasn't restarted until last week.
"Production recommenced at Longwall 707 on October 13 following the completion of the necessary remedial action at the Appin mine," it said.
"We will operate a single longwall at the Appin mine across the remainder of FY18 [July 2017-June 2018] as part of a staged ramp-up of activities, before returning to a two longwall configuration in the December 2018 quarter," it said.
The company said it will provide production guidance for the Illawarra business in "due course."
The Appin Colliery accounted for 49% of the total Illawarra Metallurgical Coal production in fiscal 2016-2017 (July-June), and typically contributes around 60%, South32 said.
Meanwhile, the miner said its Dendrobium mine performed well during the period and is expected to pass through a fault zone in the December quarter, and a longwall move is scheduled to commence in the March 2018 quarter.
South32 exports its Australian coal via the Port Kembla Coal terminal.
