Production for the September quarter was lower than planned across all three of Whitehaven Coal’s open cut mines in New South Wales, primarily as a result of rain disruption and flooding impacts.
The Maules Creek, Werris Creek and Tarrawonga operations were already expected to produce lower volumes for September relative to the strong June quarter, as a result of mine sequencing processes.
But the results were worsened by rain in September which cut off mine access at Maules Creek for seven days. At Tarrawonga, access was cut off for two days and haulage roads were closed for 14 days in September.
Operations slowed further as a result of labour shortages, absenteeism and seasonal impacts relating to heavy fog and increased noise-related delays in the winter months.
Subsequently, the managed run-of-mine (ROM) production of 4 million tonnes was down 37 per cent on June.
The miner reported that production remained strong at the underground Narrabri mine and ahead of plan, with consistent volumes, good quality coal and completion of an efficient long wall step around late July.
Whitehaven managing director Paul Flynn said with demand for high quality coal continuing to outstrip global supply, coal prices set another record in the September quarter and were well supported.
Whitehaven Coal recorded an average coal price of $581 per tonne for the September quarter, compared with $514/t in the June period.
“With La Nifa forecast to be a feature through the spring season, we have been working constructively with councils and developing measures to minimise the impacts of weather delays and flood-related road closures as much as possible,” he said.
“Whitehaven generated $1.55 billion of cash in the September quarter and we have a net cash position of $1.93b at September 30.
“The company is performing well for the benefit of all of our stakeholders, and Whitehaven is extremely well placed to continue to support energy security for our customers and to deliver strong returns for our shareholders.”