INTERNATIONAL COAL NEWS

More strife at Carborough Downs

IN a dramatic turn of events Vale yesterday voluntarily pulled everyone out at its Carborough Dow...

Lou Caruana

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As reported in yesterday’s ILN, the mine had thought it had a gas and heating emergency under control and was gearing up to return to full production after dangerous gas levels lead to a directive by the Queensland mines inspectorate to halt production on May 29.

That directive required the orderly withdrawal of workers and the suspension of all underground operations while mine management deals with the situation.

It also required mine management to review and validate the effectiveness of “trigger” levels used to activate its current action response plan to deal with this type of gas situation.

“[There is] no need for us to issue another directive to the mine,” a spokesperson for the Queensland department of natural resources told ILN. yesterday.

“They know the issue and what to do and are addressing the heating.”

The mine is enacting strategies to lower the oxygen content in the goaf to minimise any potential further temperature rise and potential ignition of methane. This includes bulldozing cracks on the surface of the mine above the longwall panel.

“Current strategies identified by the mine are aimed at stopping the coal from getting hotter and minimising the risk of spontaneous combustion in the goaf,” the spokesperson said. “If temperature increased, there would be a risk of fire, and for an ignition of methane.”

A spokesperson for Vale told ILN he could not comment on the incident.

The news is a blow for Vale and will further test the Brazilian giant’s commitment to Australian coal at a time it is withdrawing from coal operations in Colombia to concentrate on its core iron ore business.

Vale declared force majeure at Carborough Downs after production had to stop. More than 7700 tonnes of run of mine coal output has been impacted since the withdrawal of personnel on May 29.

In the first quarter of 2012, Carborough Downs produced 325,000t of metallurgical coal.

Meanwhile the Integra underground and open cut mine has reportedly been put up for sale by the company with the help of Merrill Lynch but so far has no takers, according to the Australian Financial Review.

“Merrill Lynch expects Vale’s Australian coal assets, its stake in aluminium producer Norsk Hydro and its oil and gas assets that could fetch a combined $US3 billion-plus may be put on the block,” the AFR said.

Vale as a rule does not respond to market speculation.

The company was expected to be focusing on its Mozambique coal operations after announcing it would be selling its Colombian thermal coal operations for $407 million.

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