South32 sees Illawarra Metallurgical Coal output down
By Andrew Schonberg
Date: Wednesday 10 May 2017
(ShareCast News) - South32 Ltd's shares fell after it warned that production from Illawarra Metallurgical Coal is expected to be at least 10% below prior guidance of 7.9Mt.
It said that on 7 May 2017 elevated gas concentrations were recorded at Appin Area 7, and that all personnel were safely evacuated.
The New South Wales Department of Planning and Environment (Resources Regulator) had been informed of the incident and a prohibition notice was issued.
"Production at the Area 7 and Area 9 longwalls, which form part of the broader Illawarra Metallurgical Coal operation, has been suspended until our investigation into the incident is completed," said South32 Ltd.
"A revised production forecast for FY17 will be provided in due course, with the decrease expected to translate directly to sales given low inventory levels.
"A commensurate increase in unit costs is also anticipated."
At 12:06 BST, shares in South32 were down 3.01% to 153.25p each.
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