Whitehaven says coal prices improving

Whitehaven Coal lifted coal sales during the September quarter and is cautiously optimistic about a recovery in prices, which remain weak for now

Whitehaven Coal has lifted coal sales by 26 per cent but faces continuing weak prices.

However, the company is cautiously optimistic about steady demand and a recovery in Asian coal markets.

The NSW-based miner on Friday said it sold 2.03 million tonnes of coal during the three months to the end of September, up 26 per cent on the same period last year.

It produced a record 2.4 million tonnes, up 44 per cent on a year ago, driven by better production out of its Narrabri mine.

The prices achieved for its thermal coal sales were relatively weak, at $US77.53 a tonne.

Its metallurgical product, Newcastle semi-soft coking coal, realised $US102-$US103 a tonne.

Thermal coal contract prices towards the end of this year and early next year had been increasing, with Japanese and Korean generating companies restocking before the winter, the company said.

Thermal coal prices have also increased in Europe and South Africa due to supply difficulties out of Columbia, which has been hit by industrial problems this year.

Continued strong steel production in Asia had recently boosted metallurgical coal prices, the company said.

Whitehaven said its discussions with lenders led by ANZ were ongoing about restructuring the terms of its $1.2 billion debt facility because of legal challenges delaying its key new coal mines at Maules Creek, in NSW.

Environmentalists are fighting the federal government's approval of the mine in the Federal Court, with a decision expected in November.

Whitehaven shares had jumped five cents, or nearly 3.0 per cent, to $1.785 by 1130 AEDT on Friday.


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Source: AAP


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