Anglo American tumbles as it announces closure Australia's Drayton mine

Anglo American tumbled as it announced the closure of its Drayton coal mine in Australia next year after the New South Wales Planning and Assessment Commission recommended that the government block an expansion of the mine.

The commission said the Drayton South extension would spoil the region and critically impact stud-farming operations.

It said: "It is with great difficulty that the commission has had to conclude that the land use conflict confronted cannot be overcome."

Anglo’s coal chief executive Seamus French said: "This is the worst possible outcome for our workers, for the Hunter Valley community and for New South Wales.

“Unemployment in the Hunter Valley is at 8% and to reject a project that would have continued to support this region for another 15 years, providing local people and their families with security, is incomprehensible.”

The closure of the mine will likely result in the loss of around 500 jobs.

Anglo said that in its assessment, the commission had ignored detailed scientific assessments and advice from government agencies, concentrating instead on “unfounded claims” from two horse studs.

At 0955 GMT, Anglo shares were down 6.1% at 409.25p.