Neale said the thermal coal market had undergone the largest boom and bust price cycle in history.

On whether New Hope’s business success factors discussed in 2007 could apply to today’s coal and financial markets, he said they did but applications and emphases were weighted differently.

New Hope is consequently focusing on medium-term strategies and its people as the keys to success, while aiming to be flexible and adaptable over the short term.

The Queensland open cut coal producer is aiming to complete its current expansion projects on time and within budget, including the Acland mine expansion to 4.8 million tonnes per annum, the Queensland Bulk Handling port stockyard expansion in Brisbane and the Wetalla Water pipeline project to Acland.

Neale said the company would also continue its merger and acquisition evaluations.

New Hope has an enviable cash position, having sold its undeveloped New Saraji project to BMA before the downturn for $A2.45 billion ($US2.02 billion) in July 2008.

Commenting on the former boom times in the coal industry, Neale said life for producers had been relatively easy for the past few years with some people forgetting about the lean times.

He said there would be change but producers did not know the timing, duration, rate, quantum, volatility and impact, and warned that producers ignored these factors at their corporate peril.

Neale emphasised that harmonised relationships were essential during market downturns and New Hope had been nurturing its market relationships under a 10-year program that was ongoing in its development.

“No one producer can specifically influence the market, but can have significant engagement and very effective relationships with its customers,” he said.

New Hope also incorporated some counter-cyclical efforts in its strategy.

“When the market is kind, plan for more difficult times and vice versa,” Neale said.

He said the company locked up coal volumes two years ago and sought to broaden and grow Chinese market share while still increasing Japanese market volumes.

He added that volume could have a much greater impact than price on the corporate bottom line.

Neale advocated the use of next generation operational and business improvements to keep costs low and also the continuation of expansion projects in order to be ready for the next market upturn.

In the managing director role since November, Neale has been the company’s chief executive since 2005 and first joined New Hope back in 1996.

This year’s Coaltrans Australia conference focuses on the challenges and opportunities arising from the radically altered market conditions.