PERTH (miningweekly.com) – Despite the declining coal prices, ASX-listed producer Whitehaven Coal remains upbeat about the company’s prospects for the future.

“While not ignoring the current weakness in coal markets, we remain confident that coal has a growing role to play in the world’s future energy requirements and that the high-quality coals produced by Whitehaven will be in strong demand from Whitehaven’s key Asian markets for many years into the future,” said MD Paul Flynn on Friday.

During the six months ended December, Whitehaven set both production and sales records, on the back of its Maules Creek mine, in New South Wales, producing and shipping its first coal.

Saleable coal production for the interim period reached 4.4-million tonnes, which was 9% higher than the previous corresponding period.

During the same period, a record six-million tonnes of managed coal was sold, 4.7-million of which was Whitehaven’s share, generating revenue of A$371.8-million.

“We are delighted to have achieved a wide range of very positive financial, strategic and operational outcomes during the half, in spite of a lacklustre coal market,” said Flynn.

“Importantly, we have been able to commence production at our Maules Creek project three months ahead of schedule,” Flynn said, adding that the project would be transformational for Whitehaven as it would double production.

Furthermore, Flynn pointed out that Whitehaven had been able to maintain its earnings before interest, taxes, depreciation and amortisation margin in a period of falling commodity prices by improving the efficiency of each of its operations, and continuing with sustainable cost cutting at all of its mines.

The cost reduction programme delivered an average cost of A$63/t in the half-year period, down from the A$71/t reported in the previous corresponding half.

“The 6% reduction in costs from the previous half and the 11% reduction from the previous corresponding half were pleasing, and shows our leadership team is making a difference,” Flynn said.

He added that the fundamentals of the business were also continuing to improve, with new low-cost production established at Maules Creek and more upside potential identified at the Narrabri mine.

“These two tier one assets will underpin Whitehaven for many years into the future.”