Anglo Coking Coal Mine Blaze to Have Months-Long Impact

A fire at Anglo American’s Grosvenor underground mine in Australia has halted production. The fire, caused by a methane explosion, may take several months to extinguish. Grosvenor, responsible for 30% of the company’s annual coking coal output, faces significant delays, complicating Anglo’s plans to sell its coal assets following a rejected $75 billion BHP takeover. The fire impacts potential sale prices and timelines for Grosvenor and Moranbah North mines. Grosvenor, which resumed production in February 2022 after a 2020 explosion, has high methane levels, with 60% of the gas supplied to Queensland’s electricity grid.

Lendlease Sells US Military Housing Business for $480m

Lendlease has agreed to sell its US military housing business to Guggenheim Partners Investment Management for $480 million, marking a significant premium to its book value. This sale aligns with Lendlease’s strategy to exit international property development and overseas construction, focusing instead on its Australian operations. CEO Tony Lombardo emphasized the company’s priorities of strengthening its balance sheet, returning capital to security holders, and investing in Australian developments. Lendlease anticipates FY24 operating profit after tax to be between $260 million and $275 million and expects group gearing to reach the upper end of its target range.

Inflation Has No Chance of Hitting Chalmers’ Forecasts: Survey

A survey of 37 economists indicates that inflation in Australia will remain above the Reserve Bank’s target for at least 12 months, challenging Treasurer Jim Chalmers’ optimistic forecast of a 2.75% consumer price index by December. Despite Chalmers’ confidence, economists expect underlying inflation to stay above the 2%-3% range until June next year. Chalmers acknowledged the pressure of existing interest rate rises and noted that inflation does not always decrease in a straight line. Treasury estimates suggest that a $300 energy bill rebate per household could reduce headline inflation by 0.5 percentage points by late this year.