Having found production at its open-cut mine operations hampered by the flooding arising from the continuing La Nina weather system, Australian coal producer Whitehaven Coal has revised down its coal production and sales guidance for the financial year 2022-23 (July 1, 2022-June 30, 2023).
Export volumes from Australia's main coal ports may be evidence of the situation which has developed recently. Specifically, in October this year coal exports from the key port of Newcastle in New South Wales totaled 10.08 million mt, up from 10.06 million mt in September, but down from 14.25 million mt in October last year.
Accordingly, the company has cut its run-of-mine (ROM) coal production guidance to 19-20.4 million mt from 20-22 million mt initially announced on October 19. In particular, the company has cut expected ROM coal production at its Maules Creek mine to 10.3-11 million mt from 11.7-12.6 million mt and at the Gunnedah open-cut mines to 3.1-3.4 million mt from 3.3-3.7 million mt, but has increased guidance for its Narrabri underground mine to 5.6-6 million mt from 5-5.7 million mt. “While mine sequencing plans provide opportunities to lift volumes throughout the year, recent rain and flooding events continue to drag on ROM production, predominantly at Maules Creek and Tarrawonga open-cut mines”, the company stated. Meanwhile, the company has moderated its coal sales guidance for the year 2022-23 from 17.5-18.5 million mt anticipated earlier to 16.5-18 million mt.
In the previous financial year, Whitehaven sold 18.82 million mt of coal, down five percent year on year, while its ROM coal production decreased by three percent year on year to 20.003 million mt.