South32’s share price fell 5.4% to R26.65 on Wednesday morning after the mining group warned shareholders it would miss production targets by more than 10% at its Illawarra metallurgical coal mine. The mining group, unbundled from BHP Billiton in 2015, said it would miss its target because of a safety closure. The company safely evacuated all personnel from its undergound mine in New South Wales, Australia, after detecting dangerous levels of gas. The government regulator has issued a prohibition notice suspending production in the affected areas until an investigation has been completed. South32 said a revised production forecast for its financial year to end-June would be provided in due course, with the decrease expected to translate directly into sales given the low inventory levels. A commensurate increase in unit costs was also expected. The group warned shareholders that production from Illawarra would be at least 10% lower than its 7.9-million tonne target.

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.