Signature Sponsor
Anglo American Declares Force Majeure on Q4-Delivery Coking Coal After Mine Suspension



July 5, 2024 - Diversified miner Anglo American has declared force majeure on fourth-quarter coking coal deliveries following the June 29 fire at its Grosvenor mine in Queensland, four Asia-based customers said July 5.

The customers, including steelmakers and cokemakers in Northeast and Southeast Asia, said they were informed of the declaration via an emailed letter on the night of July 4 that was seen by S&P Global Commodity Insights.

The affected deliveries would be for contracts involving at least Moranbah North, a prime hard coking coal, two of the customers said.

"The Q4 shipment we have for [Moranbah North] is a mere 80,000 mt and we are not going to be affected seriously though," a source with one of the buyers said. "We have no plans to seek a substitute cargo even if things don't get better by the end of the year."

Another buyer said that it was "still early," and it was not rushing to seek replacement cargoes from the spot market.

Anglo American did not immediately respond to a Commodity Insights' request for comment via email.

Platts Premium Low-Vol Hard Coking Coal has risen $22/mt, or 9%, since June 28, to be assessed at $256/mt FOB Australia on July 4. Platts is part of Commodity Insights.

Anglo American said June 30 that it had suspended production at the Grosvenor mine in Queensland as it worked with local authorities to extinguish the underground fire.

The miner said in a statement June 30 that its metallurgical coal division was expected to produce 8 million mt of product in the first half of 2024, of which Grosvenor would contribute around 2.3 million mt. Grosvenor's contribution to production for the full year was pegged around 3.5 million mt, indicating lower volume in the second half of the year due to a planned longwall move.

At least six Anglo American customers told Commodity Insights earlier in the week started July 1 that they expect to be able to receive Q3 deliveries of Moranbah North or German Creek.

In response to a request for comment, the state's mining safety regulator said July 5 that the fire was still burning at the Grosvenor mine, and the sealing process was underway.

"It's an evolving situation an active investigation," a Resources Safety and Health Queensland spokesperson said.