Whitehaven eyes increased capacity at proposed Gunnedah coal mine

Whitehaven Coal will seek approval to lift the amount of coal it can produce at the proposed Vickery mine near Gunnedah.

Whitehaven Mines chairman Mark Vaile. (Photographer: Simon Bullard)

Whitehaven Coal expects to lodge the draft Environmental Impact Statement (EIS) for its upcoming Vickery project in NSW in the first quarter of 2018. The east coast miner currently holds approval for a 4.5 million-tonne-per annum open cut mine at the site but plans to seek approval for 10 Mtpa production, Chairman Mark Vaile told shareholders.

“Our next major development is the Vickery Project, an already approved coal mine located in the Gunnedah basin on land that has previously been mined,” he said at the company’s annual general meeting on Wednesday.

“It will generate around 500 jobs during the construction phase and roughly 450 jobs during operations, the majority of which will come from the local communities of Gunnedah, Narrabri, Boggabri and surrounding areas.” The miner is seeking to sell 30 per cent of the project, which will be started once it completes a ramp-up of production at its Maules Creek project in the state.

The company (WHC) has forecast production to be between 22 and 23 million tonnes in FY18, as it consolidates operations before a further push in output next year. It produced 20.78 million tonnes of coal in the 2017 financial year. The timing of the Vickery project will be dependent on government approvals and board sanction of the project, Mr Vaile said.

At 12pm (AEDT), Whitehaven shares were down 0.41 per cent at $3.625.

AAP