Bluff coal mine to be mothballed
The Carabella Resources-owned mine, 20km east of Blackwater, exports low-volatile PCI coal for use in steel production and has a workforce of about 140.
MACA said the parties were working to fulfill current coal sales obligations, with mining services expected to halt around the end of November 2020.
“In conjunction with our client, Carabella, we believe it is prudent to cease operations until a sustained recovery in the PCI coal price occurs,” MACA chief executive officer Mike Sutton said.
“MACA are able to redeploy the majority of the Bluff fleet to existing and new projects which are commencing shortly.
“A relocation of the Bluff fleet will reduce the expected capital expenditure for FY21 by $35 million as a result.”
The carrying value of the amount Carabella owed MACA for mining services performed and the working capital facility as at June 30 was $34.7 million, the company said.
In a community update on social media, Bluff PCI Management said it remained committed to the project and would keep the community informed with further updates as they were available.
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