MARKETS

Longwall at Narrabri will continue as planned: Haggarty

THE proposed merger between Whitehaven Coal and Nathan Tinkler's Aston and Boardwalk Resources wi...

Lou Caruana
Longwall at Narrabri will continue as planned: Haggarty

The merger, which was announced yesterday, would bring together Whitehaven’s longwall mine with Aston’s open cut Maules Creek mine in the Gunnedah Basin but neither company would be deviating from its mining strategies, Whitehaven managing director Tony Haggarty told ILN.

“The development program of both companies won’t be influenced by this. Both companies are pushing ahead as fast as possible with their development plans,” he said.

With a market capitalisation of $A5.1 billion, the newly merged entity would be Australia’s largest independent coal company if a scheme of arrangement is approved by shareholders.

Delta SBD’s dismantling of the surface build and installation of underground for the Narrabri longwall should begin in January 2012 despite expected delays in its commissioning.

The contractor successfully completed the longwall surface build, which was phase one of the project.

Shortages of skilled operators at the Narrabri mine is expected to push out the commissioning of the longwall to mid-April next year.

Whitehaven is continuing to find and train skilled underground personnel to operate the longwall, with Haggarty telling ILN the merger would have a minimal impact in helping fill skilled operators’ roles.

“Aston doesn’t have any underground operations,” he said. “So there’s no direct benefit there. I mean I think longer term the fact of having the bigger leading company will certainly tend to attract more people and so on but in the short term I don’t expect it to have any real impact.”

Haggarty said he took the jobs shortage seriously, and that it was an industry-wide issue, especially in emerging regional areas such as the Gunnedah Basin.

“We’re leaving no stone unturned in trying to attract people to the operation,” he said. “It’s not a Whitehaven issue as much as a national issue and an underground coal mining issue in Australia, that’s there’s an overall shortage of people.

“In the medium term the only way to get where we want to be on this issue is to train our own workers and that’s what we’re doing. But because it’s a fairly highly skilled job it takes a year or so, so it takes a bit of time to train those people up. But that’s the answer in the medium term.”

The chairman designate of the merged entity Mark Vaile said founder, major shareholder and current chairman of Aston, Nathan Tinkler, would not have any role on the new board.

“Nathan is not on the board,” he told ILN. “The discussion between the two companies in terms of board structure and the management structure has obviously been one to find balance between the two entities going forward and we’ve arrived at the proposed situation and board structure as is.

“We still have one further independent non-executive director to find and we will do that during the course of the next three months or so. Nathan has opted not to be on this board and has a great deal of confidence in the entire grouping that’s coming together from both Aston and Whitehaven.”

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence: Automation and Digitalisation Report 2024

Exclusive research for Mining Magazine Intelligence Automation and Digitalisation Report 2024 shows mining companies are embracing cutting-edge tech

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets