Anglo American CEO Mark Cutifani told an analysts’ briefing that the mine was on its way to make a significant contribution to the company’s profitability.
“All credit to Seamus [French Anglo Coal CEO] and the guys, a few challenges in the first half at Grosvenor,” Cutifani said.
“They have continued to improve. And certainly, in the last month, it has been very encouraging.
“With that asset, another leg that I think will make a material contribution to the business. I'm very excited with the potential we see, particularly in the last month.”
Anglo American had initially decided to exit the coal business and sell the Grosvenor and nearby Moranbah North mines.
However, a lift in coal prices and operational outperformance at Moranbah North led to a change of heart.
“We have been absolutely thrilled with the progress that has been made,” Cutifani said.
“We have had to think very carefully about the market positions we take.
“So, a lot of work to be done, thinking very careful about our capital allocation. And it will all be about making sure we can generate cash flow and returns.”
