Anglo American has to close Moranbah North mine due to a gas threat
(Kitco News) - Anglo American (AAL:LSE) has had to evacuate its workforce from the Moranbah North coal mine in Queensland due to rising gas levels behind the mine’s longwall. The firm removed its workforce on February 20 as a safety precaution. The underground conditions have since started to normalise at the mine due to the measures taken. An Anglo American spokesperson said, "the rise in gas levels appeared in the goaf, which was an area behind the longwall that caved in behind the coal face after mining".
The spokesperson said it was believed that a coal heating issue or change in coal face pressure was the reason for the rising gas levels. the Anglo American spokesperson said “At the time of the incident, we had been mining through some particularly challenging geology and every precaution was being taken,”. The spokesperson added “The conclusions from the expert review of the incident will inform a comprehensive risk assessment prior to re-entry, which will require regulatory approval and lastly said, “The safety of our workforce remains our priority and we are keeping them closely informed.”
Anglo is now working with internal and external specialists to assess the cause of the spike. The Moranbah North coal mine is located near Anglo American’s Grosvenor coal mine, where a gas-related incident occurred last year and injured 15 workers. Anglo American employs more than 600 people and holds an 88 per cent stake in the Moranbah North mine.
As you can see from the daily share price chart below the shares opened lower and currently are just down half a percent. This does look like a great opportunity for the dip buyers are commodities prices trade very well. It will be interesting to see if the price pressure could hit the next support at 2567 or if it will break the previous wave high at 2846 per share.