Australia's Whitehaven Coal cuts FY20 coal production forecast

Credit: REUTERS/© Tim Wimborne / Reuters

Whitehaven Coal on Thursday cut its coal production outlook for 2020, while raising its cost forecast, as the company faces labour issues at its Maules Creek operations and drought conditions in New South Wales.

Dec 5 (Reuters) - Whitehaven Coal WHC.AX on Thursday cut its coal production outlook for 2020, while raising its cost forecast, as the company faces labour issues at its Maules Creek operations and drought conditions in New South Wales.

Australia's biggest independent coal miner cut its managed run of mine coal production expectations for the full year to a range of 20 to 22 metric tonnes from a range of 22 to 23.5 metric tonnes.

Whitehaven also raised unit cost forecast (excluding royalties) for the period to between A$73 and A$75 per tonne from A$70 per tonne estimated previously.

The company said challenges in sourcing skilled operators for Maules Creek, its largest operation, contributed to unanticipated productivity losses.

It said production at Maules Creek in New South Wales has also been affected by smoke, dust and haze due to ongoing severe drought conditions.

Its outlook also incorporates "expectation of further disruptions at the project during the summer months", the company said in its statement.

(Reporting by Shruti Sonal in Bengaluru)

((Shruti.Sonal@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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