PERTH (miningweekly.com) – Australian coal miner Whitehaven Coal has increased its quarterly production for the three months to March by some 99%, with the company saying that its focus remains on cost cutting.
During the quarter ended March, Whitehaven produced 2.5-million tons of coal, compared with the 1.2-million tons produced in the previous corresponding period, on the back of the ongoing ramp-up of the Narrabri longwall operation.
Year-to-date production had also increased by 78% on the previous year, to more than 6.8-million tons.
Saleable coal production for the quarter under review was up 121% on the March quarter of last year, to more than 2.3-million tons, while total coal sales were up by 70%, to 2.4-million tons.
Whitehaven’s opencut mines delivered a run-of-mine tonnage of some 1.24-million tons during the quarter, at an yearly rate of around five-million tons.
The company said that production at the opencut mines had been affected by wet weather, particularly the Werris Creek mine, where operations were concentrated at the lower levels of the pit.
The Narrabri underground mine delivered some 1.3-million tons during the quarter, a 23% improvement on the preceding three months, with 1.1-million tons from the longwall operation.
Whitehaven said that ramp-up of the longwall project continued on track, with a targeted capacity of six-million tons a year.
Meanwhile, the company told shareholders that it was committed to driving down costs and improving efficiencies through its Stage 2 Operational review, with a key focus on reducing mine operating costs and overheads, and extracting operational efficiencies in the face of the continued low coal prices and the high Australian dollar.
The integration of the Aston and Boardwalk assets was also expected to deliver synergies, and once the Maules Creek project was operational, further reductions were expected in the costs of procuring tyres, fuel, explosives, rail services, electricity, banking facilities and other corporate costs, Whitehaven said.
Longer-term synergies were also expected from coal blending opportunities and integrated rail and port infrastructure synergies, once Maules Creek was operational.
The project was expected to ramp up to a yearly production of 10.5-million tons by 2016.