The Asia Miner

JAN-MAR 2016

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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34 | ASIA Miner | Volume 13 • Issue 1 | 2016 Australia Coal THE Department of Planning and Environment has granted White- haven Coal approval to increase annual production from 8 million to 11 million tonnes and to install a 400 metre wide longwall face at the Narrabri mine in northern New South Wales. Whitehaven hopes the mine will remain one of Australia's best and most effcient under- ground coal mines. Narrabri is Whitehaven's lowest cost operation with 2015 fnancial year costs of Aus$52 per tonne. It was Australia's number one long- wall operation in FY2015. Key elements of the expansion include the purchase of addition- al longwall face shields, a new armoured face conveyor and drive motors, upgrades to the coal clearance systems and surface coal handling stockpile facilities. Mining is taking place in longwall panel LW05 and the frst 400 metre wide longwall panel being developed is LW07. It is expected to come into production in the frst half of 2017. The 400 metre wide longwall face is expected to initially increase annual ROM coal production by an estimated 750,000 tonnes. Whitehaven says the benefts of implementing an extended long- wall face include less gate road and main road development, fewer longwall moves, increased productivity and improved safety. Narrabri produced 7.7 million tonnes of ROM coal and 7.2 mil- lion tonnes of saleable coal in FY2015. ROM coal production for FY2016 is expected to be in the range of 6.6 to 6.8 million tonnes as two full longwall moves occur. Whitehaven's managing director and CEO Paul Flynn said, "Nar- rabri is one of the best and most effcient underground coal mines in Australia. The approval for increased production is another signif- icant step towards achieving Whitehaven's goal to become Austra- lia's leading independent coal company, and will drive Whitehaven's costs of production further into the frst quartile. "Narrabri's coal and Whitehaven's high quality coal more broadly has an important role to play in the long term demand for energy in South East Asia. One of the most effcient power stations in the world, J-Power's Isogo, uses Narrabri coal and the approval of in- creased production is good news for both our business and for highly effcient power stations like Isogo as they seek to reduce carbon emissions." The Narrabri Mining Lease was granted in January 2008 and de- velopment of the mine commenced in 2009. First development coal was produced in the September quarter of 2010 and longwall production commenced in October 2012. It employs approximately 360 people with most living in the local region. PRODUCTION at Whitehaven Coal's newest mine Maules Creek in northern NSW has ramped up to the expected early annual rate of 6 million tonnes after the operation was declared commercial on July 1, 2015. When operating at annual design capacity of 12 million tonnes in 2018, the mine will double the company's production to more than 23 million tonnes, making it Australia's largest indepen- dent coal producer. Maules Creek commenced railing coal in December 2014, less than a year after construction commenced. During the quarter end- ing September 30, 2015, ROM coal production totalled 1.549 mil- lion tonnes with saleable production of 1.479 million tonnes and coal sales totalled 1.635 million tonnes as some of the coal stocks built up during the pre-commercial phase were washed and sold. Performance testing of the coal preparation plant was successful- ly completed during the quarter with the plant operating at its design rate for the testing period. By the end of the quarter the plant had processed more than 1.0 million tonnes of coal. The quality of coal in the upper seams at Maules Creek has gen- erally exceeded expectations with lower ash and better coking properties evident in the seams. If the improved quality from these seams is maintained, it is possible the mine will produce and sell a higher proportion of metallurgical coal. Some mining equipment for the next ramp-up step has arrived at site with an additional large 800-tonne class excavator and associ- ated trucks already operating in the open cut. The full complement of additional mining equipment capable of mining at an annual rate of 8.5 million tonnes was expected to be in place and operating by the end of December. Production guidance for the current fnancial year is expected to be in the range of 7.1 and 7.3 million tonnes. Whitehaven owns four open cut mines in the Gunnedah Basin - Maules Creek, Werris Creek, Tarrawonga and Rocglen – the large Nar- rabri underground mine and operates a Coal Handling and Processing Plant at Gunnedah. Coal travels by rail to the Port of Newcastle before being shipped to customers mostly in Japan, Korea, Taiwan and India. Principal products are high quality, high energy, low ash and low sulphur thermal coal and metallurgical coals used in steel produc- tion. The company is growing its local workforce from 600 to more than 1100 within the next fve years. Whitehaven ramps up Maules Creek production Stockpiled coal at Whitehaven Coal's Narrabri underground mine in northern New South Wales. Whitehaven to increase Narrabri production

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