Narrabri mine impacted by ‘geological challenges’

Whitehaven Coal’s Narrabri underground mine experienced adverse productivity impacts from geological features, the company’s latest quarterly report shows.

Washouts in the current longwall panel coupled with equipment reliability issues following the last refurbishment and rehanding of the longwall contributed to a decrease in overall production.

Run of mine coal production for the December quarter was down 29 per cent on the previous quarter.

“A number of operational changes are being implemented to improve longwall productivity,” the company’s quarterly report read.

Managing director and chief executive officer Paul Flynn said overall run of mine production and sales guidance for financial year 24 remains unchanged.

“However, production and sales mix is expected to reflect the stronger performance at the open cut mines and lower volumes from Narrabri,” he said.

The company held a net cash position of $1.5 billion as at December 31, 2023, after paying a $833 million tax payment in December in relation to financial year 23 and a US$100 million cash deposit for the acquisition of Daunia and Blackwater mines.

While the Narrabri underground mine experienced a decline in productivity, Maules Creek figures increased on the previous quarter.

Run of mine coal production at Maules Creek increased by nine per cent.

During the quarter, $51.9 million of expenditure was incurred on the Vickery, Winchester South and Narrabri stage three development projects including $38.2 million on mining equipment, infrastructure and capitalised mining activities for early mining of Vickery.

Included in the $52.4 million was $1.7 million for exploration activities at development projects.

An additional $1 million was spent on exploration activities at Maules Creek and Tarrawonga for coal quality and geotechnical analysis.

The extension of the Narrabri underground mine has received State Significant Development Consent.

Federal EPBC approval is yet to be finalised together with secondary approvals that are required prior to project commencement. In October 2023, the Federal Court dismissed an application for judicial review brought in respect of the federal Environment Minister’s decision that the Narrabri stage three underground mine would not be a substantial cause of the physical effects of climate change on World Heritage properties and matters of national environmental significance. This judgment has now been appealed and the appeal is scheduled for hearing in February 2024.