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Whitehaven Coal Limited : Annual Report 2013
13 Whitehaven Coal Limited Annual Report 2013 Ownership: • Whitehaven 100% The Werris Creek mine which is Whitehaven's lowest cost mine performed strongly during the year with ROM coal production increasing by 32% to 1.68Mt and saleable coal production increasing by 15% to 1.55Mt from the previous year. The increase was due to the introduction of a larger excavator and trucks to the mine as production was increased to compensate for the closure of the Sunnyside mine. The mine does not have a CHPP so coal production is sold on a ROM basis or blended with other coals from the portfolio. Approvals were obtained from the NSW State Government allowing for the increase of ROM coal production to 2.5Mtpa from the previous level of 2.0Mtpa. As part of the expansion project the mine infrastructure is being relocated and the rail loading facilities are being upgraded with the work expected to be completed in the September quarter of 2013. A recently completed assessment of the project, incorporating new geological information along with more detailed analysis of old underground mining data, has revealed some deterioration of the quality and recoverability of the coal and shortened the mine life. Current Reserves are su cient for about an eight-year mine life. As the mine remains one of Whitehaven's lowest cost mines it has been decided to blend higher quality coal from the other mines with some of the coal produced at Werris Creek to improve its saleability and pricing in the current market. Werris Creek mine
Annual Report 2012