Appin mine shut due to pressure bump, significant impact

Spot Supply Tightens Further as Appin Mine Shuts

Appin Mine Closure:

Appin mine is now temporarily closed, removing an estimated 3.3 Mt/year of washed coking coal from the market — equivalent to ~3.7 Panamaxes/month.

BHP Cuts Spot Supply:

On top of this, BHP is reducing spot availability due to recent rain events and a prior roof fall, affecting short-term supply.

Anglo’s Moranbah Remains Offline:

No restart yet at Anglo’s Moranbah mine, compounding the supply-side constraints from Queensland.

Europe No Longer Resells:

European end users are holding onto cargoes amid rising HRC prices, tightening resale liquidity.

Market Outlook:

With Appin's closure, BHP’s constraints, and Moranbah shut, the market loses significant high-quality FOB Australia material. Spot fundamentals are sharply tightening, raising the potential for near-term price upside.

The Incident:

On April 6, 2025, a roof collapse at GM3’s Appin coal mine in south-west Sydney partially buried four miners under coal about 500 meters underground. Emergency crews responded around 3 a.m., rescuing the workers, who were later hospitalized in stable condition. The incident, possibly caused by a “pressure bump,” remains under investigation by the NSW Resources Regulator. Mining operations have been suspended. Government officials, including Workplace Relations Minister Murray Watt, emphasized the importance of safety in mining. The event has raised concerns over underground mining hazards and the need for stringent safety measures across Australia’s resources sector.