Vale announced that Carborough Downs, one of its metallurgical coal operations in the Central Bowen Basin, Queensland, Australia, declared force majeure (FM), effective 31 May 2012. Vale has communicated with the customers and related suppliers as required under the agreements with them.

FM was declared following the detection of abnormal levels of carbon monoxide in the mine and a subsequent directive from the Queensland State Inspectorate for Mines on 29 May to conduct an orderly withdrawal of personnel from the mine. No employees have been affected and no environmental damage has occurred during this process.

It is estimated that roughly 7,700 metric tons of run-of-mine coal output has been impacted since withdrawal of personnel took place on 29 May. In the first quarter of 2012, Carborough Downs produced 325,000 metric tons of metallurgical coal.

Vale is working closely with the Queensland State Inspectorate for Mines to safely re-commence mining operations as quickly as possible.