Whitehaven's future assured - Chairman

By Marc Castro

Nov 04, 2013 02:08 AM EST

The chairman of Whitehaven Coal had told its shareholders that the future of the company is assured after a difficult year, with its share value cut in half and its losses reported at AUD82 million.

According to Whitehaven Coal Chairman Mark Vaile, despite global coal markets being tight and prices being flat, a modest improvement in both thermal and metallurgical coal prices were registered in the past few months. He said the ramping up of operations of its flagship Narrabri underground mine as well as the development of the Maules Creek open pit mine would provide for the future of the company, with revenues flowing from the two large highly productive mines.

During the mining company's annual general meeting held last Monday, Vaile said, "We doubled our coal sales in fiscal 2013 and have plans to more than double production again over the next three years. As you are aware, Whitehaven is a company in transition from being a four million ton (a year) producer to 23 million ton producer with two, world class tier one mines."

The company has also commenced discussions with its lenders, one of them being ANZ about restructuring its AUD1.2 billion debt facility due to delays in Maules Creek. The mine has been held back by court action on claims as to local environmental damage to the area north of Sydney.

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