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Whitehaven Coal Limited : Annual Report 2013
17 Whitehaven Coal Limited Annual Report 2013 Whitehaven currently uses both the Port Waratah Coal Services (PWCS) coal terminal and the NCIG coal terminal at the port of Newcastle, NSW to load its coal for export to the Asian region. Both of these coal terminals are world class facilities and are used by many other coal producers in the Hunter Valley and surrounding coal basins. Whitehaven has an equity interest in NCIG that entitles the Company to about 6.0Mtpa capacity at the port when it is operating at its full capacity of 66Mtpa. The NCIG terminal completed its nal 2F expansion in June 2013 which lifted its throughput capacity to 66Mtpa. The Company currently has a rolling ten-year contract with PWCS that provides the Company with 5.3Mtpa until CY2015. From CY2015 Whitehaven's rolling ten-year contracted volume at PWCS increases to 12.8Mtpa. In addition, Whitehaven had acquired a total of 16.4Mt of port allocation spread between May 2012 and June 2016. These tonnes were to be used for the production from the new Narrabri and Maules Creek mines in the Gunnedah Basin. However, due to delays in the approval process for both of the mines the Company had excess port allocation in FY2013 and expects to have excess allocation in FY2014. The cost of take or pay obligations in FY2013 caused an increase in production costs across the Company of about $3/t on an FOB basis. Recent reductions in port costs at both PWCS and NCIG are likely to save Whitehaven about $16 million in take or pay costs in FY2014. Total take or pay costs in FY2014 are expected to be about $3/t of coal production for the year. Rail haulage contracts are currently in place for a total of 9.5Mtpa and Whitehaven has entered into a long-term haulage contract with Aurizon for a total of up to 16Mtpa to be increased in line with requirements as projects come on stream. A trial to test 30 tonne axle load locomotives on the Gunnedah rail line commenced on 1 August 2013. Initial results of the trial are positive and it is envisaged that full 30 tonne axle load operations will commence in 2015 and train sizes will increase from 6,300 tonnes to about 8,000 tonnes resulting in a cost reduction on a $/t basis for coal hauled in those larger trains. Below rail contracts with ARTC are in place to match the port and rail haulage contracts. Infrastructure
Annual Report 2012