Coronado Global Resources has resumed operations at its Mammoth Underground Mine following a fatal accident, while grappling with losses at its U.S. Logan Complex. The company anticipates improved coal pricing and production in the coming quarters.
- Mammoth Underground Mine operations resumed after fatal accident suspension
- Australian open-cut mines stabilised post-cyclone with planned shutdowns completed
- Logan Complex in the U.S. operating at a loss, potential temporary idling considered
- Environmental financial provisioning confirmed with no surety required, $15 million pool contribution due
- Coal prices improving, with Premium Low Volatile coal prices rising to US$250/t expected to boost cash flow
Resumption of Mammoth Operations
Coronado Global Resources has announced the resumption of operations at its Mammoth Underground Mine in Queensland after a suspension triggered by a fatal accident in early January 2026. The mine’s contracted operator has been working closely with Resources Safety and Health Queensland to meet stringent safety requirements before recommencing mining activities on 11 February. Full production is expected to be restored safely within weeks, reflecting the company’s commitment to operational safety and regulatory compliance.
Stability in Australian Open-Cut Operations
Meanwhile, Coronado’s Australian open-cut operations have weathered Tropical Cyclone Koji with no material impact beyond typical seasonal disruptions. The Curragh Complex completed a planned two-week shutdown of its coal processing plants, which is anticipated to enhance throughput and product mix. This operational stability is crucial as the company navigates both environmental and market challenges.
Environmental Financial Provisioning Update
On the regulatory front, the Queensland Financial Provisioning Scheme manager has finalised the annual review for the Curragh Complex’s Environmental Authority. Coronado is required to contribute approximately US$15 million into the scheme by the end of March 2026, representing 6.5% of the Estimated Rehabilitation Cost. Notably, no surety is required, easing immediate capital demands while ensuring environmental obligations are met.
Challenges in U.S. Operations
Coronado’s U.S. operations face headwinds, particularly at the Logan Complex, where sustained weakness in the High-Volatile coal market has pushed realised prices below cash operating costs. The complex is currently operating at a loss, prompting the company to curtail production to meet existing contractual commitments through March 2026. Should market conditions fail to improve, a temporary idling of the Logan Complex is planned to preserve liquidity and shareholder value, while maintaining flexibility for a potential restart.
Positive Outlook on Coal Pricing and Market Fundamentals
Despite these challenges, Coronado is optimistic about the outlook for metallurgical coal prices. The December 2025 quarter saw a US$15 per tonne uplift in Premium Low Volatile coal prices, averaging US$200 per tonne, with further gains to US$250 per tonne expected in the June 2026 quarter. This pricing strength, underpinned by steady steel production and supply constraints, alongside the strategic designation of metallurgical coal in India and the U.S., positions Coronado to benefit from improving market conditions.
Bottom Line?
Coronado’s operational resilience and strategic positioning set the stage for recovery, but U.S. market volatility remains a critical watchpoint.
Questions in the middle?
- How quickly can Mammoth Underground Mine return to full production without compromising safety?
- Will the Logan Complex’s temporary idling extend beyond March if market conditions remain weak?
- How will rising coal prices translate into sustained profitability amid ongoing operational challenges?