Fatal accident closes Australian coal mine

Market: Coking coal
28/03/22

UK-South African mining firm Anglo American has closed its 6.5mn t/yr Moranbah North hard coking coal mine in Queensland, Australia, after a contractor died in a workplace accident on 26 March, further delaying the slow ramp-up of the mine.

The Moranbah mine was restarted in June after being closed for four months because of elevated gas levels, but difficult geological conditions led to below-expected production levels in July-December. Anglo American maintained its 20mn-22mn t guidance for 2022 in February but warned that it could be at the bottom-end of this range.

The fatality has raised new concerns about safety in the Queensland underground coal mining industry. Anglo American has faced significant scrutiny since a gas ignition at its 5mn t/yr Grosvenor metallurgical coal mine in Queensland injured five workers in May 2020, which led to the mine being closed until February 2022.

Prior to the Grosvenor ignition, the firm had to close its Moranbah mine from late January 2020 to early June 2020 after a roof collapse during a long wall change. The firm's safety record has led unions to question its license to operate underground coal mines in Queensland.

It is unclear how long it will take for the mine to reopen and if the most recent accident will have any effect on the ramp-up at Grosvenor, with Anglo American pledging to undertake a full investigation into the incident with the relevant authorities.

The ramp-up of Grosvenor and Moranbah had been expected to ease coking coal supply tightness out of Queensland, with a prolonged closure at Moranbah likely to delay the expected increase in shipments through the Dalrymple Bay Coal Terminal at Mackay.

Premium hard coking coal peaked above $660/t fob Australia in mid-March, as the Russia-Ukraine conflict increased demand for non-Russian metallurgical coal, before easing over the past week, albeit still being significantly above long-term averages. Argus last assessed the premium hard low-volatile coking coal price at $559/t fob Australia on 25 March, down from a peak of $664/t on 15 March, but up from $112/t a year ago.

By Jo Clarke

Australian metallurgical coal prices $/t

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Singapore, 28 April (Argus) — Japan's coking coal imports extended a downtrend in March, reflecting the prolonged downturn in the steel sector, which has weighed on raw material demand. The country imported 2.57mn t of coking coal in March, down by 18pc on the year but up by 5pc from February, according to data from the country's finance ministry. Shipments dropped by 10pc to 8.15mn t in January-March 2025 from a year earlier. Top supplier Australia shipped 19pc less volume from a year earlier at 1.78mn t, and volumes in January-March fell by 18pc from 2024 to 5.59mn t. Arrivals from Canada fell to 192,903t in March, down by over 60pc compared with a year and month earlier, but January-March volumes rose by 11pc on the year to 1.22mn t. Metallurgical coke imports rose by around 30pc on the year and month to 78,729t in March, with volumes in January-March 28pc higher on the year at 255,804t. Crude steel production from basic oxygen furnaces (BOF) rose by 3pc on the year to 5.3mn t. But output could fall in coming months. Japanese steel producer JFE will suspend operations at one of its three BOF in the West Japan Works from around mid-May on the back of lower steel demand in domestic and export markets, the firm announced on 2 April. This is expected to lower annual crude steel output by around 15pc. Meanwhile, the mill will proceed to invest in an electric arc furnace (EAF) facility in western Okayama, which could begin commercial operations in April-June 2028. Other steelmakers such as Nippon Steel and Kobe Steel have also been making the shift from BOF to EAF. The Argus premium low-volatile hard coking coal price fob Australia averaged $174.84/t in March, down by 7pc from February. By Xiuqi Huang Japan's coal imports Origin Mar 25 Mar 24 y-o-y ± % Feb 25 m-o-m ± % Jan-Mar 2025 Jan-Mar 2024 y-o-y ± % Coking coal ('000t) Australia 1,781 2,206 -19 1,522 +17 5,589 6,780 -18 Canada 193 493 -61 554 -65 1,221 1,103 +11 US 297 215 +38 252 +18 743 848 -12 Indonesia 298 230 +29 85 +249 495 329 +50 Colombia 0 0 n/a 25 -100 25 0 n/a Others 0 0 n/a 0 n/a 80 48 +67 Total 2,569 3,144 -18 2,438 +5 8,153 9,109 -10 Met coke (t) China 74,633 57,426 +30 56,445 +32 222,202 188,235 +18 Others 4,096 4,069 +1 3,713 +10 33,602 11,323 +197 Total 78,729 61,495 +28 60,158 +31 255,804 199,558 +28 Source: Japan Finance Ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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