SURGING SECTOR BOOSTS WHITEHAVEN

WHITEHAVEN Coal says it is on track to deliver “a record set of financials” this year as thermal coal prices hover at seven-year highs, thanks to strong demand, particularly from China and India.

Chief executive Paul Flynn said record production at Whitehaven’s Maules Creek mine in the fourth quarter, and ongoing strong performance at its Gunnedah mine helped the group hit sales within the guidance range.

Whitehaven said global demand for thermal coal in the first half of 2018 was strong following a 2 per cent increase last year.

“The appetite for high-quality coal in the Asian region continues to grow, with India and China leading demand,” the group said in its fourthquarter production report yesterday.

Commenting on the market outlook, Whitehaven said Chinese power demand had increased 8.5 per cent in the first five months of 2018, with coal-fired generation up 6 per cent over the same period.

A colder-than-expected winter, an early summer and strong industrial demand had driven the increase in demand, while constraints on domestic coal production and distribution had lifted demand for imports, Whitehaven said.

Coal demand across the European Union continues to fall, the company said, but reduced supply from South Africa and Australia plus the higher