(Reuters) - Australia's Mining And Energy Union has reached an agreement with Anglo American to extend pay until August-end for workers at its Grosvenor mine that was shut earlier this week due to an ongoing underground fire, the two parties said.

"We are pleased to confirm payment extension from July 15 to Aug. 31 for all employees and embedded contractors working full-time at Grosvenor in operations or staff roles," the miner said in a joint statement with a regional council and several unions on Friday.

Anglo American had battled a fire ignited at its Grosvenor steelmaking coal mine in Australia's Queensland state last weekend. There were no injuries but assessment of the damage and the re-opening of the mine might take several months.

The suspension of the mine has had investors worried over what impact it could have on the miner's plan to sell its coal portfolio.

"We are making significant progress in the temporary sealing of Grosvenor Mine and stabilising the emergency response," the joint statement added.