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South32 Q2 coking coal output down 43pct

Coal News - Published on Fri, 19 Jan 2018

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Economic Times quoted Mining group South32 Ltd as saying that its second-quarter metallurgical coal output dropped 43 % due to an outage at its Appin mine in Australia, while raising its full-year output forecast for South African manganese operations.

Production of coal used in steelmaking fell to 788,000 tonnes in the December quarter from 1.39 million tonnes a year earlier, but was still up 60 % on the previous quarter and beat a UBS forecast of 746,000 tonnes, following a partial restart of the Appin mine in August.

The Appin operations account for about 60 % of overall production.

South32 suspended operations at Appin mid-2017 due to concerns over high gas levels in the mine. Government regulators allowed the company to partially restart the mine in August.

Since then, the mine has operated at a significantly lower efficiency compared with industry benchmark levels. In December, South32 forecast its Illawarra coal project’s 2018 output at about 60 % of what it produced the previous year.

The company, which resumed operations at a section of the colliery in October, said it remained committed to its ramp-up plan as it looked to drive productivity to an ”acceptable level”.

December quarter manganese ore output rose 21.8 % from a year ago. Zinc production was down 62.3 % over the period, while nickel output increased 12.2 %.

South32 raised its full-year output forecast for its South African Manganese operations by 8 % due to strong market demand and a record December quarter performance, but stood pat on guidance for all other operations.

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Posted By : Nanda Koijam on Fri, 19 Jan 2018
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