Whitehaven expects newly acquired mines to add up to 5Mt a quarter to production

19th April 2024

By: Marleny Arnoldi

Deputy Editor Online


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Australia-based coal producer Whitehaven Coal continues to deliver strong operational performances at its Maules Creek and Gunnedah openpit mines, having produced 4.4-million tonnes of run-of-mine (RoM) coal in the quarter ended March 31.

Production at the Narrabri project, however, was lower than expected in the reporting quarter owing to geological challenges and maintenance stoppages.

The RoM production in the quarter under review was 13% lower than the quarter ended December 31, 2023, but 12% higher compared with the March quarter of last year.

Whitehaven realised an average coal price of A$219/t in the quarter, which the company says indicates a stable pricing environment. The company realised an average coal price of A$216/t in the December quarter and A$400/t in the March quarter of last year.

The company is on track to meet its yearly RoM production guidance at between 18.2-million and 20.7-million tonnes, particularly given the incoming contribution of the newly acquired Daunia and Blackwater coal mines, which Whitehaven expects will produce between 4.5-million and 5-million tonnes of coal in the first quarter of Whitehaven’s ownership.

Whitehaven’s yearly revenue comprises 70% of metallurgical coal sales and 30% of thermal coal sales as a result of the acquisition.

The company’s production reporting will include the newly acquired Queensland operations and the existing New South Wales mines from April.

Moreover, Whitehaven spent $78-million in the quarter on development projects at the Vickery, Winchester South and Narrabri Stage 3 deposits.

An early mining project at the Vickery deposit is progressing according to plan, with first RoM production due in the June quarter.

The Narrabri underground Stage 3 expansion project will extend the life-of-mine from 2031 to 2044, while the Winchester South deposit involves permitting and studies for future mine development.

Whitehaven will announce its production expectations for 2025 in mid-August when it publishes its results for the 2024 financial year.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online



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