Extreme weather dampens Australian coal miner’s outlook

However, as the fallout from Russia’s invasion of Ukraine deepens a global energy shortage, demand and prices are soaring in the short term. High-quality thermal coal at the Port of Newcastle, the benchmark in Asia, has been trading at record average levels of nearly $US400 a tonne, up from an average of $US90 in 2021, putting Whitehaven on track to report record profits.

Whitehaven managing director Paul Flynn said in the company’s September quarterly report that they had been working to counter interruptions and adapt to the extreme weather events.

“We delivered strong operational performance in the September quarter at our Narrabri underground mine, but our open-cut operations were impacted by wet weather and flood related road closures in September,” he said.

“With La Nina forecast to be a feature through the spring season, we have been working constructively with councils and developing measures to minimise the impacts of weather delays and flood-related road closures as much as possible.”

“Whitehaven generated $1.55 billion of cash in the September quarter, and we have a net cash position of $1.93 billion at 30 September.”

The disruptions from La Nina come three weeks after Flynn and Whitehaven chair Mark Vaile fielded questions at the company’s AGM from shareholders about the miner’s ongoing contribution to the climate crisis.

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“Last month, more than a fifth of Whitehaven’s shareholders took the extraordinary step of demanding the company wind down coal production in line with a net-zero emissions by 2050 pathway,” van de Pol said.

“Whitehaven must heed investor and community calls to drop its coal expansion plans, that would usher in further climate chaos.”