Operations at the Kestrel metallurgical coal mine in Queensland's Bowen Basin, Australia, have been disrupted after a fire accident during the night shift on December 19 forced the suspension of its longwall production activities, according to sources.

The mine's operator Kestrel Coal Mine declared force majeure on December 24, following a directive from Resources Safety & Health Queensland issued on December 20 to halt production.

The force majeure declaration may impact shipments scheduled between December 2024 and January 2025, as per a notice from the operator, though the full duration of the disruption remains uncertain.

Located 40 kilometers north of Emerald, the Kestrel mine is a key supplier of met coal used in steelmaking, with volatile matter exceeding 30% on an air-dry basis. In 2023, the mine produced 5.57 million tonnes of saleable coal, down 2% year on year.

Kestrel Coal Mine is a joint venture comprising Kestrel Coal Resources (80%) and Japan's Mitsui Investments (20%). Kestrel Coal Resources is majority-owned by private equity firm EMR Capital (52%), with the remaining 48% held by Indonesia's PT Adaro Energy.

A spokesperson for Kestrel Coal Resources stated that the ignition was quickly extinguished and confirmed no injuries occurred, noting that investigations into the cause are ongoing in coordination with regulators.

The accident is expected to have a minimal impact on the market given the ample supply of high-vol coal, enabling participants to find substitutes easily.