Methane ignition sparks investigation, production suspension at Australian coal

Local authorities have activated an investigation, as the blaze burning at an Australian coal mine entered its third day on Monday.

Resources Safety and Health Queensland (RSHQ) noted that the regulator was notified of an ignition of methane at the Grosvenor coal mine in Moranbah, west of Mackay, on Saturday morning.

Inspectors were immediately sent to the site, with all employees safely evacuated from the scene. The authority confirmed that no one was injured due to the incident.

"The coal mine is in the process of being sealed and as a result exclusion zones remain in place to ensure the safety of those on and near the site," said RSHQ Chief Executive Officer Rob Djukic.

Production at the Grosvenor mine was suspended by its operator Anglo American following the incident.

A spokesperson from the global mining giant said in a statement that the company is working with specialist teams from the Queensland Mines Rescue Service and the regulatory authorities to extinguish the underground fire, prior to being able to assess the steps towards a safe re-entry into the mine.

"These procedures are expected to take several months as a result of the likely damage underground," the spokesperson said.

According to the statement, Anglo American's steelmaking coal business expects to produce 8 million tonnes in the first half of this year, of which Grosvenor will contribute 2.3 million tonnes.

For 2024 as a whole, production guidance for the steelmaking coal business is estimated to reach 15 to 17 million tonnes, with Grosvenor expected to contribute 3.5 million tonnes, representing lower production in the second half of the year due to a planned longwall move.

The Grosvenor project delivered its first coal from underground longwall in May 2016 but was shut down in mid-2020 after a methane ignition injured five workers. The mine just returned to operation in February 2022.

Australian Financial Review reported that Anglo American drains approximately 60 percent of the methane gas from the seams and then supplies it to the Queensland electricity grid.