Wesfarmers is to writedown its Curragh coal mine by AUS$600 – AUS$850 million in its full year results, the company has said in a new release. It will also take a AUS$1.1 billion – AUS$1.3 billion impairment on its Target department stores.
“The decisions we have outlined today reflect more difficult market conditions in both Target and Curragh, but we remain confident that operationally we have the right plans to improve future performances over time,” said Wesfarmers’ Managing Director, Richard Goyder.
The Curragh writedown reflects a lower forecast recovery in long-term coal export prices, as well as higher market volatility – including exchange rates.
The non-cash impairment charges will be finalised as part of the group’s FY2016 annual accounts.
The Curragh mine is located in the Bowen Basin in Queensland and produces around 8.5 million tpy of metallurgical coal for export and around 3 million tpy of thermal coal.
Edited by Jonathan Rowland.