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Fire still burning at Peabody’s North Goonyella

12th October 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – US coal producer Peabody has issued force majeure notices to coal customers and certain of its vendors at the North Goonyella mine, in Queensland, as the company continues to work to extinguish a fire.

The US miner at the start of last week started implementing a multi-tiered plan to extinguish and contain a fire at the mine, after personnel observed black smoke coming from the mine, and elevated gas levels were detected.

Peabody on Friday said that the containment plan was continuing, with the initial sealing of the completed longwall panel continuing. Peabody was expected to permanently seal the area where high methane levels were concentrated.

In the meantime, three of the mine’s five openings remained temporarily sealed to reduce the air flow into the mine, while the mobile Gorniczy Agregat Gasniczy (GAG) unit continues to operate to inject high-moisture inert gasses to displace oxygen, and reduce the conditions for a fire.

Peabody said that sampling of underground gases had shown levels on general downward trends in the past two weeks, with the exception of when the GAG unit was undergoing maintenance.

The one open shaft continues to emit little or no water vapour or white smoke, and air quality monitoring equipment remains in place around the perimeter of the mine with continued good results.

“While still too early to offer meaningful insights into the financial effects or timing of next steps, the company expects financial impacts to future periods,” Peabody said.

The company intended to provide an initial look at financial and other impacts during the third quarter earnings, including recording a provision for the third quarter related to equipment expected to be sealed in the completed longwall panel.

While the timeline remains uncertain, the company will continue to evaluate potential next phases of stabilisation, assessment, mine planning, re-entry and recovery.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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