ANGLO American’s $226m metallurgical coal project Aquila situated in Australia’s Queensland state was in the final stages of commissioning, the group said today. It will extend the firm’s Capcoal underground operations by seven years.
“This new mine will have a total average annual saleable production of around five million tons of premium quality hard coking coal and benefits from low capital intensity as we are using the existing infrastructure and systems from our adjacent operations,” said Themba Mkhwanazi, CEO of bulk commodities.
The project will help support 600 jobs given that Capcoal’s Grasstree mine had reached its end of life “in recent weeks”, the group said.
Outgoing Anglo CEO Mark Cutifani has offered a strong defence of metallurgical coal mining, saying the product is essential to world decarbonisation. The group has taken a different approach to thermal coal selling its assets in the past four years.
“We still think that metallurgical coal’s got a good future, but by 2035 it will be getting tougher there as well because the hydrogen technologies will be taking over in steel-making,” Cutifani said in 2020.
Anglo American’s Capcoal complex comprises Capcoal Open Cut Mine, Grasstree Mine, Aquila Mine, the Coal Handling and Preparation Plant and associated infrastructure. Aquila is owned 70% by Anglo American and 30% by Mitsui & Co. Ltd.
