Strong performances at the Broadmeadow, Peak Downs, Saraji and Caval Ridge coal mines in Queensland, underpinned by additional stripping and higher wash-plant utilisation helped the company compensate for shortfalls in other areas.

The completion of longwall mining at Crinum in the December 2015 quarter, adverse weather conditions in the September 2016 quarter and lower yield at the South Walker Creek coal mine in Queensland were some of the setbacks encountered during the half.

Record production at Peak Downs was achieved during the December 2016 quarter with coal opportunistically trucked to Caval Ridge to utilise latent wash-plant capacity.

Energy coal production for the December 2016 half year decreased by 4% to 14Mt but guidance for the 2017 financial year remains unchanged at 30Mt.

New South Wales Energy Coal recorded improved underlying truck utilisation, however production declined by 13% as a higher drawdown of in-pit and run-of-mine inventories benefitted the December 2015 half year.

This was partially offset by an 11% increase in volumes at the Cerrejon coal mine in Colombia compared to the December 2015 half year which was constrained by drought conditions.

 

The divestment of Navajo Coal was completed on July 19 2016, with management of the mine transferred to Navajo Transitional Energy Company on 31 December 2016.