South32 reduces coal reserve estimate for Illawarra project

Ausralian-based diversified miner South32 Ltd said on Monday it has lowered the estimated coal reserves at its Illawarra Metallurgical Coal project.

The company said coal reserves for the Bulli seam have been reduced by 22 million wet metric tonnes (Mt) to 114 Mt following conclusion of a commercial agreement to relinquish a portion of its mining lease in the Appin area.

Coal reserves for the Wongawilli seam were unchanged, it said in a statement.

The Illawarra project accounts for nearly all of South32’s coking coal output.

(By Niyati Shetty; Editing by Richard Pullin)