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Strong production performance at four Queensland coalmines in 4Q16

Published by
World Coal,

Full year production target has been reached by metallurgical coal.

Metallurgical coal production

  • Metallurgical coal production for the December 2016 half year increased by 1% to 21 million t. Guidance for the 2017 financial year remains unchanged at 44 million t.
  • Strong performances at Broadmeadow, Peak Downs, Saraji and Caval Ridge, underpinned by additional stripping and higher wash-plant utilisation, more than offset the completion of longwall mining at Crinum in the December 2015 quarter, adverse weather conditions in the September 2016 quarter and lower yield at South Walker Creek.
  • Record production at Peak Downs was achieved during the December 2016 quarter with coal opportunistically trucked to Caval Ridge in order to utilise latent wash-plant capacity.
  • Thermal coal

  • Thermal coal production for the December 2016 half year decreased by 4% to 14 million t.
  • Guidance for the 2017 financial year remains unchanged at 30 million t.
  • New South Wales Energy Coal recorded improved underlying truck utilisation, however production declined by 13% as a higher drawdown of in-pit and run-of-mine (ROM) inventories benefitted the December 2015 half year.
  • This was partially offset by an 11% increase in volumes at Cerrejón compared to the December 2015 half year which was constrained by drought conditions.
  • The divestment of Navajo Coal was completed on 29 July 2016, with management of the mine transferred to Navajo Transitional Energy Company on 31 December 2016.
  • BHP Billiton Chief Executive Officer, Andrew Mackenzie, said:

    “We have performed well during a period of higher prices. Our simpler organisational structure has freed our assets to focus on what matters most and to deliver safer and more productive operations. Our consistent delivery of operating and capital productivity, and strict adherence to our capital allocation framework have positioned us to maximise shareholder value.

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