PERTH (miningweekly.com) – US coal miner Peabody Energy has developed and is implementing a multi-tiered plan to extinguish and contain a fire at its North Goonyella mine, in Queensland.

Elevated gas levels were detected at the mine during a scheduled longwall move, with personnel observing black smoke coming from the mine, prompting Peabody to confirm a fire in a portion of North Goonyella on Friday.

The miner has now developed a plan, reviewed by the Queensland Mine Inspectorate, elements of which include implementing use of a mobile Gorniczy Agregat Gasniczy (GAG) unit, a specialist piece of equipment that generates high-moisture inert gases to displace oxygen supply at a fire zone, installing temporary seals into mine openings following completion of risk assessments and using remote-control equipment to pump a fire-resistant expandable material called Rocsil, and ensuring the area is further isolated by additional drilling and sealing of the old longwall panel.

The plan would also entail Peabody working with air quality monitoring experts on a voluntary programme of environmental monitoring at North Goonyella, including regular site visits and boundary inspections to assess and analyse air quality data from key points, ensuring all aspects of the exclusion zone and other safety protocols are in place and observed, and using strict risk assessments for all anticipated plan components.

“Working in consultation with the Inspectorate and third-party experts, we're moving safely and as quickly as possible to address the situation,” said Peabody Australia president George Schuller Jr.

“Peabody appreciates the ongoing work of the team at North Goonyella, the Inspectorate, independent technical experts, Queensland Mines Rescue Service, union representatives and all of the people who are engaged in the response to this issue.”

The miner over the weekend said that it did not expect any production from North Goonyella in the fourth quarter and has a small amount of coal in inventory to ship. 

It was also too early to assess the full financial impact to future periods as a result of the ongoing issue; however, the miner said that with strong performance from other mines, Peabody is maintaining its full-year 2018 metallurgical coal sales volume targets of 11-million to 12-million tons. 

North Goonyella shipped 1.6-million tons in 2016 and 2.9-million tons in 2017.

Peabody is taking typical steps with regard to insurance coverage, with the miner telling shareholders it had potentially applicable insurance policies with a coverage limit of $125-million above a deductible of $50-million.