Australian-Japanese joint venture BHP Mitsubishi Alliance (BMA) has suspended truck operations at its 11mn t/yr Peak Downs mine in Australia's Queensland state as it investigates an incident at the mine.
Haul truck operations at Peak Downs mine have been suspended after two trucks lost traction and slid over the weekend of 9 September. No one was injured by the incident.
"We are working with RSHQ [Resources Safety and Health Queensland] and truck operations will recommence as soon as we have completed all safety checks. Other operations at the mine are continuing as normal," a BMA spokesperson told Argus on 14 September. It is unclear when operations will restart fully.
BMA produced 10.96mn t of saleable coal from its Peak Downs mine in the fiscal year to 30 June 2023.
Buyers and traders are closely monitoring the situation, although many are fairly confident that truck operations will restart in a few days with limited impact on overall production.
But others expressed concern over the situation. "Their stockpiles across operations were already low, so any incremental disruptions have a direct impact as there is less buffer available from existing stockpiles," another international trader said. An Indian trader also suggested that the news would likely "give a fresh spark to the already heated supply tightness."
Spot premium hard coking coal prices surged to a six-month high this week in the face of supply tightness. Argus last assessed the premium hard low-volatile coking coal price at $311.40/t fob Australia on 13 September, the highest level since 31 March. Buying interest remained firm particularly with post-monsoon demand coming from India, prompting buyers to increase bids to entice sellers because of limited spot availability.