Whitehaven Coal expects coal prices won't start to pick up until 2016.
The company behind the controversial Maules Creek mine in NSW has lifted its full year production target to 7.2 million tonnes, from 7.0 million tonnes, after a boost in March quarter production.
It achieved an average price of $US87.15 per tonne for its metallurgical products in the three months to March, down from $US87.56 per tonne in the December quarter.
Whitehaven expects that price to fall to a range of US$75 to US$80 per tonne in the June quarter.
Prices were likely to remain flat in 2015 and increase by around 10 per cent in 2016, Chief executive Paul Flynn said.
"Pricing has been challenging," he told reporters.
A slowing Chinese economy, plus tighter environmental regulations there, was affecting demand, he said.
But Whitehaven receives better prices from customers in Japan and does not currently ship coal to China, he said.
Maules Creek, which is 93 per cent complete and due to become commercial from July, would represent a paradigm shift for the company, Mr Flynn said.
The mine reached an annual production rate of six million tonnes in March, which will increase to more than eight million tonnes.
Whitehaven has also successfully refinanced a $1.4 billion debt facility, and is on track to reduce costs by between $1 and $2 per tonne, from $63 per tonne, he said.
The company's shares gained one cent to $1.55.
Share
