Whitehaven Coal has reported strong September quarter sales in its most recent production update.

In its September 2020 quarterly production update, the company reported total managed coal sales of six mega-tonnes, up 13 per cent on the previous corresponding period.

Managed own coal sales were 5.6 mega-tonnes, up 15 per cent, record total equity coal sales were 5 mega-tonnes, up 13 per cent, and record equity sales of own coal were 4.6 mega-tonnes, up 16 per cent.

Whitehaven Coal managing director and chief executive officer Paul Flynn said notwithstanding COVID-19 headwinds, the September quarter saw strong sales in response to demand for their product from customers in Asia.

“Operationally, we have continued the June quarter’s momentum by delivering on-plan mining performance of coal and overburden across all operations laying a solid foundation to much improved operational results,” he said.

“In a more capital constrained environment we continue to cautiously progress our development projects and implement a range of business improvement measures to drive cost reductions.”

The company reported an expected drop in production at its Narrabri operations. Production was down eight per cent on the previous corresponding quarter.

In his report, Mr Flynn said the company had traversed an area where there was a known faulted area.

“So we did anticipate lower production levels during that phase and have derated our production, our budget, to that level,” he said.

“But that was a good quarter nonetheless to get through that area and back into a normal rhythm of production now.”

From a development projects perspective, he said the company was about to lodge its environmental impact study for stage three of the Narrabri mine’s extension.

“We have lodged the document from an adequacy perspective and are working with the government on its feedback, but it will go on public display shortly,” he said. In its report, the company said no known cases of COVID-19 had been confirmed at any of its sites to date and operations remain largely unaffected but for distancing and hygiene measures.

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