Illawarra Coal is unconstrained by infrastructure, producing a premium low volatile hard coking coal which is about 85% of the total product mix, he told a Macquarie Australia conference in Sydney yesterday.

The $US565M Appin Area 9 growth project was also completed 33% below budget and ahead of schedule, he said.

“The operations are well positioned on industry cost curves,” Kerr said.

“There has been significant reduction in controllable costs and capital expenditure.

“We are focused on optimising operational performance.”

The company’s strong balance sheet is a key point of difference with other mining companies, Kerr said.

“The operations have long reserve lives with significant resource potential,” he said.

“We are well positioned to sustain production with minimal capital investment.”

Total saleable coal production at Illawarra Metallurgical Coal decreased by 11% to 5.8 million tonnes in the nine months ended March 2016 as challenging geological conditions were encountered last year at its Appin and Dendrobium mines in New South Wales.

Three planned longwall moves were completed during the period.

A 35% increase in metallurgical coal production in the March 2016 quarter was underpinned by the recommencement of longwall mining at Dendrobium and the ramp-up of the new Appin Area 9 longwall.