Coal mining at Coronado Global Resources’ (ASX:CRN) Curragh complex in Queensland was suspended following a fatal accident, compounding challenges for the company amid falling coal prices.
A roof collapse struck the Mammoth Underground Mine at around 3pm local time on Jan. 2.
Rescue teams recovered one worker safely, but a second worker could not be saved, the Queensland government confirmed late Jan. 3.
Curragh, spanning roughly 256km2 and operational since 1983, is one of Australia's largest metallurgical coal producers, supplying steelmaking markets.
The Mammoth mine, which began production last year, was intended to supplement output from the Curragh North and South open-cut mines.
Out of respect for the deceased worker, Curragh paused operations at all sites and offered support to staff, said Shaun Newberry, vice president of operations.
The incident comes at a precarious moment for Coronado. Mammoth was a key growth project, targeting up to 2 million tonnes of high-grade coal annually, as the company sought to cut spending amid declining prices and rising costs.
Coronado's debt has nearly doubled to about $928.4 million since the end of 2023, while market value has fallen 80% over two years, according to data from Bloomberg.
At the time of reporting, Coronado Global Resources' share price was $0.32.