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Whitehaven Coal Limited : Annual Report 2010
WhitehavenCoalLimited–AnnualReport2010 1 The disciplined implementation of Whitehaven’s growth plans has continued to create value for shareholders as well as opportunities for the communities in which we operate. Dear Whitehaven Shareholder, 2010 OVERVIEW This year Whitehaven Coal Limited (Whitehaven) cemented its position as the leading coal producer in the Gunnedah Basin, with continuing growth in its existing open cut operations and the successful commissioning of its major Narrabri underground mine. The disciplined implementation of Whitehaven’s growth plans has continued to create value for shareholders as well as opportunities for the communities in which we operate. Whitehaven’s $227 million investment in the Narrabri Mine has been a key focus during the year. I congratulate all of the individuals who contributed to bringing this modern, safe underground development into production. Our open cut mines continued to perform well, with significant effort made to optimise the efficiency of these operations, deliver attractive products to our customers and to manage carefully our infrastructure requirements. At the same time, the company has enhanced its development pipeline with the acquisition of the Vickery assets in the Gunnedah Basin. SUSTAINABILITY More than 120 people were employed by the Narrabri project during its construction and more than 25 contracting businesses were involved. Ongoing employment at the mine as it moves into full production will be approximately 210 people. This, combined with our open cut workforce of more than 300 people makes us one of the largest employers in north west NSW, and significant contributors to the local and NSW economies. We accept gladly our responsibilities and obligations to engage with, and participate in, the local community on many levels. Throughout the planning, development, operation and closure of our projects, Whitehaven has a strong track record of regularly engaging with relevant local communities. In addition, our operations have contributed or agreed to commit more than $4 million to community projects as well as numerous local charities and organisations. Our decision to invest in these projects has been based on consultation with local government and our desire that such contributions should benefit a broad cross-section of the community. As Whitehaven has increased its productive capacity over the last 12 months, it has also increased its resources to ensure appropriate environmental outcomes across our range of operations. FINANCIAL PERFORMANCE The company reported net profit after tax (NPAT) of $114.9 million for FY2010. This included NPAT of $59.8 million from the sale of 7.5% of the Narrabri Joint Venture and other significant items. Underlying NPAT (before significant items) was $55.1 million. This strong performance has allowed us to declare a fully-franked final dividend of 2.8 cents per share, payable on 30 September 2010. SAFETY The safety and wellbeing of our employees is critical and continues to be our number one priority. We continue to invest significant time and resources in our safety management systems and in identifying new ways to improve our safety performance. Our commitment to safety has been demonstrated during the year through maintaining our Lost Time Injury frequency ratio below industry standard, and lowering our overall number of Lost Time Injuries. AChIEVEMENTS The completion of Stage 1 development of the Narrabri Mine was Whitehaven’s key achievement during FY10. The significant investment we have made to date has been aimed at delivering a modern underground mine with the highest safety levels and most efficient mining practices. The first of the mine’s continuous miners began cutting coal in late June 2010, and the first shipment of coal left the mine by rail in late July. Since then, we have received New South Wales State Government approval for Stage 2 of the Narrabri project. This approval allows Whitehaven to invest an additional $300 million in the development of a longwall mining operation and associated infrastructure at the Narrabri Mine. In terms of infrastructure, our investment in NCIG, our existing rail allocations and our investment in two coal trains means that we have appropriate infrastructure to meet our planned FY11 production and shipping targets. On behalf of the board and all shareholders I thank Tony Haggarty, our Managing Director, his executive team, and all our employees and contractors for their significant and enduring contribution to the Whitehaven business and its long term value. John Conde, AO Chairman chairman’s letter
Annual Report 2009
Annual Report 2011