Anglo ironing out Grosvenor problems

ANGLO American’s Grosvenor longwall mine in Queensland completed its first longwall at the end of last year and, despite some ongoing technical problems, is justifying the company’s decision to retain the mine in its stable, according to CEO Mark Cutifani.
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Anglo American CEO Mark Cutifani.

Lou Caruana

Cutifani said the company continued to find ways to tweak its coal operations in the Bowen Basin and improve the performance of its longwalls.

“During the changeover, Seamus [French, Anglo Bulk Commodities CEO] and the team corrected some technical problems with the hydraulic supports,” Cutifani said in an analysts’ presentation as reported by Seeking Alpha.

“We started in the New Year with the second longwall and so far so good.”

Cutifani said that by debottlenecking the processing plant at its Moranbah and Grosvenor mines, the company earned another 25% capacity, which continued to help improve its cost position.

“There has been significant capital applied,” he said.

“So, today, we are working hard to continue to improve our margins and make sure those are delivering on the potential. 

“And while we will continue to spend money on incremental improvements, that business is playing a very important role in generating significant cash, helping us with our debt and it certainly has turned out to be a great on making sure that we stayed focused on value and kept the quality of the assets. 

“And from our perspective, the team has done a great job in delivering on the expectations that we saw and the ability that we see or the potential we see in those assets.”