In an interview with the Australian Financial Review, Robert Neale said that while thermal coal’s short-term outlook would remain tough due to oversupply, the market would improve in the medium term.
"There's too much surplus supply globally to have a rapid turnaround in pricing scenarios. But is coal dead and buried? Absolutely not," he said.
"I think most countries have learnt that there will be a sensible mix in power generation of coal, natural gas, nuclear, renewables and whatever else."
New Hope has fared better than most thermal coal companies over the past few years, with Neale crediting the company’s success to its discipline in controlling costs.
“I think what has distinguished New Hope is that we have a very cost-conscious DNA.
“We are always trying to keep our costs under control and we are very disciplined with our capital management.
“I always say: it’s very hard to get the capital, but it’s very easy to lose it through sloppy decision-making,” Neale said.
Neale will step down as chief executive of the company at the end of January, making way for chief financial officer Shane Stephan to step up as CEO.
The transition is part of a long-term succession plan and the board is managing an orderly transition, with Stephan anticipated to be appointed from February 1, the company said.
Neale is expected to remain a consultant to the company following his retirement, New Hope chairman Robert Millner said.
“A stable and capable management team has been a hallmark of New Hope’s evolution to become a successful diversified energy company and the transition process ensures this will continue to be the case,” he said.
“Shane Stephan has a unique mix of operational, commercial and financial experience in the resources sector to lead New Hope’s growth and diversification, and our measured approach to the transition will ensure a seamless handover.”
Stephan joined New Hope as chief financial officer in September 2009. He has spent more than 25 years in the coal mining industry, including in senior management roles at Macarthur Coal in 2001-09, and experience as a district inspector of mines.
