Australian Newcastle's NCIG coal terminal capacity to be 53 mil mt/year mid-2012
Newcastle Coal Infrastructure Group's coal terminal at Australia's port of Newcastle is expected to increase its capacity for coal exports by 23 million mt/year to 53 million mt/year by the middle of the year when its second construction phase is completed, NCIG consortium member Whitehaven Coal said in an update Friday, Platts reports.
Whitehaven has an 11% share in the NCIG terminal at Newcastle port, which it said is continuing to ramp up to its first construction phase export capacity of 30 million mt/year after opening in May 2010.
"Construction of the second stage of NCIG is well advanced and is on time and budget for commissioning in mid-2012, taking capacity to 53 million mt/year," said Whitehaven in its report for the March-ended quarter.
The third and final construction phase of the NCIG terminal is on schedule for commissioning in mid-2013 and will bring the coal export facility's capacity to 66 million mt/year.
Six New South Wales coal producers are owner-operators of the NCIG terminal -- BHP Billiton, Banpu-owned Centennial Coal, the soon to be merged Gloucester Coal and Yancoal, Peabody Energy and Whitehaven Coal.
Whitehaven's share of NCIG's capacity at its completion will be 6 million mt/year and the coal producer has secured an additional 8.4 million mt/year of coal shipment capacity for 2012-2016 in two other Newcastle port coal terminals operated by Port Waratah Coal Services.
"The new NCIG port continues to operate well. Whitehaven has incurred some under-utilization charges at the port this quarter, due to the delay in the Narrabri longwall start-up," said Whitehaven in its report.
The Narrabri underground mine at Whitehaven's Gunnedah Basin production base in New South Wales has produced 509,000 mt of coal up to the end of March, though the mine has been beset by recruitment difficulties which has resulted in production delays, said Whitehaven in its report.
Whitehaven sold 1.4 million mt of coal in the March-ended quarter including 357,000 mt of coal purchased from other producers and sales were up 6% on the March 2011 quarter, though its own production fell 4% to 940,000 mt in the recent quarter.
"Coal purchases were necessary in the March quarter to conclude legacy contracts, with additional purchases necessary due to wet weather impacts on Whitehaven's own production," said the company referring to a previously announced production loss of 400,000 mt stemming from heavy rainfall in February and March.
Thermal coal comprised 1 million mt of Whitehaven's export sales in the March-ended quarter compared with 370,000 mt of metallurgical coal for which prices were $124/mt and $140/mt on an ex-Newcastle basis, respectively.
"With carried over tonnages from the March quarter, Whitehaven expects to achieve an average of approximately $165/mt in the June quarter for metallurgical coal sales," said Whitehaven in its report.
The coal producer has received state government approval to expand production at its Rocglen and Werris Creek open-cut mines and has applied to increase production from its Tarrawonga site by 1 million mt/year to 3 million mt/year.
Whitehaven said its planned A$5 billion ($5.2 billion) merger with Aston Resources, a neighboring Gunnedah Basin coal exploration company remains on track, and shares in the merged entity are due to start trading on the Australian Securities Exchange next month.
Whitehaven has an 11% share in the NCIG terminal at Newcastle port, which it said is continuing to ramp up to its first construction phase export capacity of 30 million mt/year after opening in May 2010.
"Construction of the second stage of NCIG is well advanced and is on time and budget for commissioning in mid-2012, taking capacity to 53 million mt/year," said Whitehaven in its report for the March-ended quarter.
The third and final construction phase of the NCIG terminal is on schedule for commissioning in mid-2013 and will bring the coal export facility's capacity to 66 million mt/year.
Six New South Wales coal producers are owner-operators of the NCIG terminal -- BHP Billiton, Banpu-owned Centennial Coal, the soon to be merged Gloucester Coal and Yancoal, Peabody Energy and Whitehaven Coal.
Whitehaven's share of NCIG's capacity at its completion will be 6 million mt/year and the coal producer has secured an additional 8.4 million mt/year of coal shipment capacity for 2012-2016 in two other Newcastle port coal terminals operated by Port Waratah Coal Services.
"The new NCIG port continues to operate well. Whitehaven has incurred some under-utilization charges at the port this quarter, due to the delay in the Narrabri longwall start-up," said Whitehaven in its report.
The Narrabri underground mine at Whitehaven's Gunnedah Basin production base in New South Wales has produced 509,000 mt of coal up to the end of March, though the mine has been beset by recruitment difficulties which has resulted in production delays, said Whitehaven in its report.
Whitehaven sold 1.4 million mt of coal in the March-ended quarter including 357,000 mt of coal purchased from other producers and sales were up 6% on the March 2011 quarter, though its own production fell 4% to 940,000 mt in the recent quarter.
"Coal purchases were necessary in the March quarter to conclude legacy contracts, with additional purchases necessary due to wet weather impacts on Whitehaven's own production," said the company referring to a previously announced production loss of 400,000 mt stemming from heavy rainfall in February and March.
Thermal coal comprised 1 million mt of Whitehaven's export sales in the March-ended quarter compared with 370,000 mt of metallurgical coal for which prices were $124/mt and $140/mt on an ex-Newcastle basis, respectively.
"With carried over tonnages from the March quarter, Whitehaven expects to achieve an average of approximately $165/mt in the June quarter for metallurgical coal sales," said Whitehaven in its report.
The coal producer has received state government approval to expand production at its Rocglen and Werris Creek open-cut mines and has applied to increase production from its Tarrawonga site by 1 million mt/year to 3 million mt/year.
Whitehaven said its planned A$5 billion ($5.2 billion) merger with Aston Resources, a neighboring Gunnedah Basin coal exploration company remains on track, and shares in the merged entity are due to start trading on the Australian Securities Exchange next month.