PERTH (miningweekly.com) – Diversified miner Xstrata Resources confirmed on Thursday that its Rolleston coal joint venture, in Queensland, continued to be heavily affected by the recent heavy rains, and the operation, thus, remained in a “recovery mode”.
Xstrata Coal communications manager James Rickards said that production at the Rolleston mine was halted two weeks ago, and a force majeure has remained in place for certain customers.
Production had ceased at the operation and all machinery had to be moved to dry land.
“Our priority is to remove excess water from the opencut pits in accordance with all legislative requirements. We will then be able to more effectively determine the full impact of the recent flood waters upon the operation,” said Rickards.
He added that Xstrata Coal had yet to determine a date for the restart of production, and had yet to determine an amount for the impact on current production.
Rolleston coal is a joint venture between Xstrata Coal, which owns a 75% interest, Sumisho Coal Australia and IRCA Rolleston, both of which own a 12,5% stake.
With a mine life in excess of 20 years, Rolleston is an opencut thermal coal mine, with current approved production levels of six-million tons a year for export out of the port of Gladstone and two-million tons a year for domestic use.
The coal mined at Rolleston is characterised by its low ash content and coupled with the mine’s low strip ratio, positions Rolleston coal in the lowest cost quartile of Australian coal producers.
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