Production for the financial year came in at 7.07 million tonnes compared to 8.3Mt for the previous corresponding period.

This week Australia’s Mining Monthly revealed a brief prohibition stoppage at the Dendrobium mine earlier this month has compounded production problems for the company’s Illawarra Metallurgical Coal subsidiary in the current quarter.

On July 12 the New South Wales Department of Planning and Environment issued a Section 195 Prohibition Notice to Dendrobium, which prohibited work at its Longwall 13 Production Area. 

A South 32 spokesman told Australia’s Mining Monthly that work was carried out at Dendrobium to rectify the issue and the prohibition notice was lifted on July 14.

The notice had compounded the production problems for South32’s Illawarra Coal’s subsidiary which has stopped producing coal from its major asset, the Appin underground coal mine over high levels of gas.  

Production at the Appin colliery, which accounted for 49% of total coal production in FY17, remains suspended as a comprehensive review of the operation’s systems and processes is undertaken. 

“This in-depth review has been designed to ensure the operation restarts safely and reliably following an extended outage,” the company said.

“Upon recommencing underground activity we will be relocating the Appin Area 9 longwall to panel 902. 

“Revised production guidance will be provided when we report our FY17 results to reflect the completion of our annual budget cycle.”

Metallurgical Coal sales were 4% or 255,000t higher than production in FY17.

“Our metallurgical coal products continued to be priced with reference to market indices in FY17, with no meaningful change in product quality differentials,” the company said.