by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Whitehaven Coal Limited : Annual Report 2013
73 Whitehaven Coal Limited Annual Report 2013 Werris Creek mine Ownership: Whitehaven 100% The Werris Creek mine performed strongly for the year with ROM coal production increasing by 32% to 1.68Mt and saleable coal production increasing by 15% to 1.55Mt. 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. 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. This has resulted in a reduction in the Reserves that will be produced from the project for the balance of its 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 (Equity Share) Werris Creek mine -- 000t 2013 2012 Movement ROM Coal Production 1,677 1,274 +32% Saleable Coal Production 1,547 1,343 +15% Sales of Produced Coal 1,510 1,407 +7% Sales of Purchased Coal -- -- -- Total Coal Sales 1,510 1,407 +7% Coal Stocks at Period End 323 117 +176% Narrabri mine Ownership: Whitehaven 70% and Operator; ElectricPower Development Co. Ltd 7.5%; EDF Trading 7.5%; Upper Horn Investments Limited 7.5%; Daewoo International Corporation and Korea Resources Corporation 7.5%. The Narrabri mine ramped up output in line with schedule during FY2013 with production reaching an annualised rate of 5.2Mt on a 100% basis for the March 2013 quarter. The targeted production of 6.0Mtpa (100% basis) is within reach and should be achieved as the mine settles into steady state production. A number of technical issues were overcome during the year, as is usual in the startup of a large underground longwall mine. Importantly the longwall completed the rst panel in June and successfully achieved the six week schedule to move the equipment into the second panel of the mine. Key technical risks associated with gas drainage and roof caving have been dealt with appropriately and will become normal operating practices at the mine. On 28 November 2012 a train carrying Narrabri's coal derailed near Boggabri, damaging a section of line and making the rail line impassable. The Australian Rail Track Corporation (ARTC) undertook extensive emergency repairs to the line and it was re-opened on 20 December. While stockpile capacity was extended at the mine, full capacity was reached during the rail closure period and longwall production ceased. Longwall production recommenced on 28 December 2012. Unutilised take or pay commitments for port and rail due to the derailment were in excess of $2.5 million. Underground roadway development for the second panel was completed well in advance of the longwall move in June 2013. This has allowed the number of continuous miners required at the mine to fall from four units to three units bringing the added bene t of lower costs. Roadway development for the third panel is already nearly completed several months in advance of the longwall move currently scheduled for February 2014. The site's workforce now consists almost entirely of Whitehaven employees who live in the local region. This is an important outcome for the mine and Company as Whitehaven endeavours to employ locally where possible. Specialist contractors will continue to be employed when required at the mine. The CHPP struggled throughout the year to reach its design capacity of 1,000tph however, by the end of the period it was operating consistently in the range of 900tph to 1,000tph. The original bypass equipment used for the early development phase of the mine has been recommissioned. The circuit has a capacity of 1,000tph and will reduce the amount of coal that has to be washed which in turn will reduce overall moisture levels in the thermal product. An added bene t is that processing costs will decline as less coal has to be washed in the future. The current products from the mine are 0.65Mtpa of PCI coal with the balance thermal coal. Directors' Report
Annual Report 2012