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Wesfarmers production drops in Sept Q

24th October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Wesfarmers has reported a slight decline in coal production from the Curragh mine, in Queensland's Bowen basin, with September quarter production of about 2.8-million tonnes of coal.

Metallurgical coal production was up by 1.2% to just over two-million tonnes, while steaming coal production decreased by 3.7%, to 828 000 t.

For the 12 months to September, Wesfarmers reported a metallurgical coal production of 7.3-million tonnes, down 5.4% on the previous year, which the company said reflected the impact of wet weather during Cyclone Oswald in early 2013, which interrupted rail and port activities.

At Bengalla, Wesfarmer’s share of production was 888 000 t, 1.6% below the previous quarter owing to the mine operating in a less productive section of the mining sequence.

Meanwhile, the miner on Thursday also reported that it had concluded price negotiations with the majority of its customers for the October to December quarter and that the new contract prices for its metallurgical coal were 5% higher than the previous quarter contract prices.

Around 75% of the deliveries during the October to December quarter would be at the new contract prices, with the balance at carry-over prices from the previous quarter, and subject to actual contract deliveries.

Edited by Creamer Media Reporter

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