Posted on : 18-10-2023 | Author : Upasana Singh and Adwitiya Srivastava
Whitehaven Coal of Australia reported a nearly 33% increase in first-quarter production, driven by higher output across most of its sites and the production ramp-up at its key Narrabri mine.
The company, Australia's leading independent coal miner, disclosed that its managed run-of-mine (ROM) coal production reached 5.3 million tonnes during the quarter ending on September 30. This marked a substantial increase from the 4.0 million tonnes produced in the same period a year earlier, exceeding the 4.75 million tonnes estimated by Morgan Stanley.
The improvement in production at the Narrabri mine was particularly notable, with a full quarter of longwall production contributing to the mine's ROM production of 1.5 million tonnes, more than three times the amount from the April-June period.
Whitehaven Coal also anticipates that rising power demands as the Northern Hemisphere heads into colder weather will maintain strong demand and prices for thermal coal in the upcoming months. According to the company, thermal coal prices are expected to strengthen due to increased seaborne demand as coal stocks diminish.
Whitehaven Coal's Chief Executive, Paul Flynn, stated, “Narrabri’s longwall ramp-up continued throughout the quarter, with improved performance in the month of September.”
The company's positive production results reflect ongoing resilience in the coal sector and increasing demand for thermal coal.