It said it was “right sizing” its workforce to the operating configuration, as it prepared to operate its troubled Appin colliery in New South Wales at its historical levels of production.

“FY18 production guidance and our forward plan for Illawarra Metallurgical Coal remain unchanged,” South32 said.

Illawarra Metallurgical Coal is focusing on improving its safety performance and culture in phase two of its Appin restart plan.

South32 said Appin had embarked on the safe start of a staged ramp-up and a focus on drainage and ventilation.

It will be operating a single longwall at Appin for the remainder of FY18 and returning to a twin longwall configuration at Appin in the December 2018 quarter.