South32 withdraws Appin workforce over gas concerns

29th June 2017 By: Creamer Media Reporter

JOHANNESBURG (miningweekly.com) – The New South Wales regulator has issued diversified miner South32 with a prohibition notice at its Appin underground mine, after the company on Wednesday evacuated its workforce over concern of a potential gas limit breach.

The company has subsequently confirmed that no gas breach had occurred, but said the New South Wales Department of Planning and Environment had still raised broader concern over recent gas exceedance events at the mine, which forms part of the Illawarra metallurgical coal operation.

Illawarra also includes the Dendrobium underground mine, which is not affected by the prohibition notice and which remains operational.

South32 said it expected Illawarra to meet its production guidance of 7.9-million tons for the 2017 financial year, which ends on June 30, as the operation had already produced 7.05-million tons up until June 28.

The Illawarra full-year guidance was adjusted in December last year, owing to ground issues at Appin Area 9 and a moderation of mining rates in Appin Area 7 to ensure gas concentrations were maintained at safe levels.

The company would provide a production guidance for the 2018 financial year when it publishes its full-year results on August 24.