Anglo American PLC (LSE:AAL) shares dropped more than 3% this morning, making it the top FTSE 100 faller after its coal mine in Queensland, Australia suffered a fire.
Production at its Grosvenor mine, which produces coal to make steel, was halted over the weekend after the fire, leaving question marks over whether the group can still quickly offload the asset as part of its recovery plan.
Remedies to fix the mine are expected to take "several months" due to the likely damage caused by the fire to the underground parts of the site.
Grosvenor's production accounts for around a fifth of the group's coking coal division, according to analysts at RBC Capital Markets.
Analysts at Liberum warned that if second-half production forecasts are reduced in line with the effects of the disruption then full-year underlying earnings for the overall company could drop by 1%.
"Not such a big deal but might slow down the sales process, which would otherwise be the easiest step of Anglo American's restructuring," said Ben Davis at the UK broker.