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Illawarra coal production drops in FY2016

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World Coal,

Illawarra Metallurgical Coal reported total saleable coal production down by 6% to 8.4 million t in the financial year to the end of June 2016 (FY2016), according to South32’s results.

Production was hit by challenging geological conditions encountered at the Appin and Dendrobrium mines in the first six months of the reporting period, while the company also undertook three longwall moves during the year.

Record quarterly production was achieved in final three months of FY2016, however, after the completion of the Appin Area 9 project in January increased longwall utilisation and cutting rates at the mine. The quarter was also without longwall moves at either Appin or Dendrobium, underpinning a 29% quarter-on-quarter increase in metallurgical coal production to 2.1 million t.

The Appin Area 9 project was completed ahead of schedule and under budget.

Annual metallurgical coal production hit 7.1 million t, a 5% fall on the previous year, while thermal coal production was down 11% to 1.3 million t.

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