Underlying profit (EBITDA) for the Metallurgical Coal business doubled to US$1,977 million in 2017 and there were record production results at all three underground operations: the Moranbah, Grosvenor and Grasstree mines. This result follows a prior record year and reflects the significant productivity and cost improvements the Metallurgical Coal business has embedded at all mines over the last four to five years. There was also a 65% increase in Anglo American’s realised price for metallurgical coal in 2017, with the business now producing a greater proportion of higher-margin hard coking coal.

David Diamond, Chief Executive of Anglo American’s Metallurgical Coal business, said: “The strong contribution of our Metallurgical Coal business to Anglo American’s 2017 results demonstrates the outstanding efforts of our people and the high quality of our assets.

“We made some challenging decisions in 2016, resulting in the divestment of Foxleigh, Callide and Dartbrook mines in Australia and commencing a process to divest the Drayton mine. These portfolio changes have enabled our business to focus on producing higher-value metallurgical coal here in Australia. This strategy, and a continuation of our operational productivity and cost improvement measures across all sites, has resulted in a strong performance in 2017.

David Diamond reinforced that the Metallurgical Coal business would stay focussed in 2018 on continuing to drive safety and health improvements, increasing productivity, and people and community development. Adding: “Our focus this year will continue to be on improving the productive capacity at each of our mines, including through enhancing technology and innovation, cost disciplines and progressing sustaining projects and low-capital growth options.

“We also recognise the importance of investing in our people and communities and, over the past few months, we have added another 230 roles to our business, including 30 apprentices and 40 graduates across our sites and we have plans to further increase our workforce in Queensland”.

Anglo American's Metallurgical Coal business is currently studying options to develop Moranbah South, a high quality metallurgical coal deposit adjacent to the Company’s Moranbah North mine. Once the Grosvenor mine ramp-up is complete, the Company will look at a low capital option to further increase the Moranbah Grosvenor plant capacity. The business is also progressing further brownfields opportunities to expand the Dawson complex, with the extension of the 9-12 pit and further options to extend the life of operations at Grasstree, with the development of the Aquila project.