Winchester South investment decision on hold
The planned open-cut metallurgical coal mine, 30km south-east of Moranbah, is Whitehaven’s first investment in Queensland.
In its latest quarterly report, Whitehaven said Winchester South was continuing to progress through the Queensland Government’s major project development process.
The maiden JORC Reserve estimate for the project s expected to be released this financial year.
It is among the company’s main development projects – along with the Narrabri Underground Mine Stage 3 Extension Project and Vickery Extension Project – underpinning planned production growth in the next decade.
But Whitehaven said it did not expect to consider making a final investment decision in relation to these projects in 2020.
“While coal markets in the March quarter have demonstrated their resilience, volatile financial market conditions cause Whitehaven to continue to be cautious in allocating capital to expansion,” the company said.
Whitehaven’s assets include Maules Creek, the Narrabri longwall mine, Gunnedah open cut mines, Tarrawonga and Werris Creek.
It reported 4.9Mt managed ROM coal production in the March quarter,
up 8 per cent on the previous corresponding period.
But March quarter coal sales of 4.5Mt were down 22 per cent on the previous corresponding period.