The lack of adequately skilled staff is slowing production at Whitehaven Coal, while also boosting costs as it has been forced to turn to external specialists to help close the gap.
The NSW coal producer is expanding production at its Narrabri mine, in the state’s north west, but work is being hampered by a lack of skilled staff, which is delaying progress.
The stage one development is for up to 2.5 million tonnes of coal, which will rise to 6 million tonnes a year when the present expansion is concluded.
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”Weekly development advance continues to be hampered by the lack of availability of skilled underground miners,” it said in its December production report to the ASX today.
”This is preventing full utilisation of the four continuous miner units which are available and has resulted in a shortfall of approximately 509 metres against first half year plan to December, 2011,” it said.
An additional external contractor, SDB-Delta, has brought in experienced staff to boost development work at the mine, while internal employees are being trained for longwall mining equipment operation.
”If performance continues at the current rate, longwall commissioning is expected in mid to late April,” it said.
December quarter saleable coal production rose 2 per cent year on year to 1.1 million tonnes, but with total coal sales declining 22 per cent to 1.4 million tonnes.
Earnings continue to be hampered as well by the need to purchase coal to meet contractual commitments, although at a lower rate than previously as output levels improve, it said, with a further 330,000 tonnes of legacy contracts due to be delivered in the March quarter.
March quarter coking coal prices are expected to run at $US184 a tonne, up from around $US179 in the December quarter.
Steaming coal delivered into the Japan market for the 12 months to March 2012 have been fixed at $US124 a tonne, it said, which is higher than the ex-Newcastle spot market price of $US117 a tonne.
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