Whitehaven to double output over three years
PERTH (miningweekly.com) – Coal miner Whitehaven is gearing up to more than double its production when its Maules Creek mine – which an environmental group unsuccessfully tried to stop in a last-minute court battle – becomes operational over the next three years.
Whitehaven chairperson Mark Vaile told shareholders that run-of-mine (RoM) production and saleable coal had reached record highs in 2013, with RoM production rising to 9.1-million tonnes and saleable coal jumping to 8.2-million tonnes. This was 71% and 67% higher respectively, than the previous year.
For 2014, Whitehaven was hoping to produce about 11-million tonnes of coal.
“Whitehaven is a company in transition from being a four-million-tonne-a-year producer to a 23-million-tonne-a-year producer, with two world-class tier-one mines. The first leg of the change is already completed following the development of our Narrabri mine, one of the most efficient and low-cost underground mines in Australia,” Vaile said.
The next step, he said, was about to start, with the construction of the Maules Creek mine, in New South Wales. The $767-million Maules Creek operation received the green light in early July to extract some 13-million tons of coal a year, with first coal delivery expected by the second half of 2014.
Vaile pointed out that not only would Maules Creek double the company’s production, but it could also account for production costs of $67/t free-on-board, which would significantly improve its overall cost base and competitiveness.
“Whitehaven’s long-term future is assured with the ongoing ramp-up of the highly efficient, low-cost Narrabri mine. This will be enhanced and complemented by the development of the low-cost Maules Creek mine, which will equip Whitehaven to face the demands of the future with two large, low-cost highly productive and efficient mines,” he said.
Vaile added that Whitehaven would continue to focus on cost reduction, improving efficiency and optimising its operations, given the current market conditions.
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