The North Narrabri longwall mine’s capacity is 6Mt per annum ROM with the mine’s record weekly production of 193,000t ROM during the half equating to a whopping 10Mtpa on an annualised basis.
Whitehaven provided some details on how the beyond-design production rates were achieved.
“With the mine operating above nameplate capacity, surface infrastructure has been enhanced with the original by-pass circuit, which allows crushed ROM coal to be placed directly onto the product stockpile, being recommissioned during the period,” Whitehaven said in the half year report yesterday.
“When combined with the coal handling and preparation plant this provides increased capacity and flexibility to deliver the required product mix.”
The second panel was mined out in January and more records for the young mine could be shattered in the coming months.
Afterall, Whitehaven’s best results so far came despite some technical setbacks.
“During the half, a team of technical experts from Caterpillar resolved the remaining technical issues with the longwall, [and] the shearer was successfully modified during the change out to rectify roll back and bi-directional cutting commenced at the end of August 2013,” Whitehaven said.
Narrabri’s saleable coal production reached 2.86Mt for the recent half which was a 138% gain from the corresponding period of the previous year.
But this is not the full story as Narrabri’s output of the higher premium-commanding, pulverised coal injection grade of metallurgical coal grows.
“Another significant achievement for the future of the mine was that following the success of the blending strategy, additional production of PCI coal can be planned,” Whitehaven said.
“Whitehaven anticipates that the mine will be able to produce and sell about 850,000t of PCI coal in full year 2014 with further upside possible in the future.”
In another achievement, the Gunnedah Basin coal producer increased the capacity of its Werris Creek open cut mine from 2Mtpa to 2.5Mtpa during the recent half.
Groupwide production totalled 4.64Mt ROM a 32% year-on-year gain, while the saleable production of 4.08Mt was up 37% year-on-year.
Whitehaven’s financial results were not as rosy as it expanded, including development of the vast Maules Creek coal project, during a downturn in coal prices.
Whitehaven made a net loss of $A11.6 million for the recent half – which was still a 76% improvement year on year.
Its preferred result was the $50.8 million it generated in the recent half for operating earnings before interest, taxes, depreciation and amortisation when excluding significant items.
This outcome was 747% higher than the $6 million this measure scored for corresponding period of 2012.
Revenue also improved markedly, with Whitehaven clocking up $402.2 million in the last six months of 2013 – 43% up year on year.
Whitehaven shares were up 3.3% to $1.767 by 4pm AEDT yesterday.
