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South32 says NSW mine remains suspended

10th July 2017

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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JOHANNESBURG (miningweekly.com) – The shares of diversified mining group South32 dropped on Monday after the company reported that its Appin mine, in New South Wales, remained shut.

South32, which is listed in Sydney, London and Johannesburg, reported on Monday that a review of the broader Illawarra metallurgical coal operation, comprising the Appin and Dendrobium mines, was still under way and it cautioned that it would take some time before full production resumed.

“A review of the operation’s systems and operating practices is currently being undertaken to ensure its ongoing safety and reliability. Given the scope of this review, an extended outage is now anticipated before production at Illawarra metallurgical coal can be restored to historic levels,” the company said in a statement.

South32 suspended operations at Appin on June 28, over concern about a potential gas breach. The New South Wales Department of Planning and Environment issued a prohibition notice after the Appin workforce was evacuated. 

The notice only affects the Appin mine and the Dendrobium mine is continuing to operate.

Shares in South32 fell by 3.2% on the ASX, 3.6% on the LSE and by 3.25% on the JSE.

Edited by Creamer Media Reporter

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