New Hope’s boss says industry is now standing up for itself, as its own production ramps up
New Hope boss Rob Bishop has lauded industry groups pushing back against policies that endanger new investment, as the company predicts a strong year ahead for its coal mines.
New Hope chief executive Rob Bishop has lauded the increasing willingness of industry groups to “stand up” for themselves and push back against policies endangering business, as the company predicted a strong year ahead for its Queensland and NSW coal mines.
“The coal industry in particular hasn’t been shown much love by governments across both state and federal,” Mr Bishop said on Tuesday, raising concerns over industrial relations and royalty policies, and levels of industry consultation.
“The contribution from coal is immense, and the more impacts which are thrown at us by governments only stand to diminish that contribution which coal makes and the broader mining industry.”
New Hope was a founding member of Coal Australia, which launched last month with a remit to promote the contribution of the coal sector to the Australian economy and advocate for constructive policy development on its behalf.
Mr Bishop’s comments came as Business Council of Australia chief executive Bran Black warned that companies were cautious about hiring and looking to invest elsewhere, as policies such as Same Job Same Pay and the right to disconnect took their toll, along with onerous regulations and taxes.
Minerals Council chief executive Tania Constable last week launched a broadside at the Albanese government, saying in a speech at the organisation’s annual dinner at Parliament House that “you could forgive our industry for feeling like it is under siege or even punished for its success’’.
“Australian mining has faced a steady stream of restrictive policy interventions, from a series of reckless industrial relations changes, and royalty raids, complex regulatory changes and the looming threats of onerous and arbitrary environmental approvals,” Ms Constable said.
Mr Bishop on Tuesday said the industry was blindsided by the Queensland coal royalty changes that were introduced in 2022 and can result in royalties of up to 40 per cent should if the price of coal exceeds $300 per tonne, with the royalties scaling in a similar way to income tax.
This pain was exacerbated last week as the state government passed a law requiring any future royalty decreases to be legislated, making it harder for any future government to make changes.
Mr Bishop said the Queensland government’s approach had been “extremely disappointing”, citing a “lack of consultation”, and a reluctance “ to engage and understand the impacts of (the royalty regime) on the coal industry,” he said.
“Same job, same pay, that’s a concern, probably less for New Hope than it is for other players, but still something which is yet another potential cost impost on an industry which is critical to the Australian way of living.”
Mr Bishop said Coal Australia would advocate for coal, and “to make the general public and governments realise the massive contribution the industry makes, and will continue to make, both financially and through employment opportunities, and also to support the world’s demand for coal, which is going to continue for some time.” He praised Ms Constable’s speech. “The Minerals Council spoke up loud and clear last week, which was excellent. So I think there is a bit of a bit of a pushback by industry to stand up for itself, which is very positive.”
Mr Bishop there were concerns, particularly in Asia, about long-term supply of both thermal and metallurgical coal, which was exemplified by Nippon Steel recently taking an equity stake in Whitehaven’s Blackwater coal mine to ensure future supply.
In terms of its own operations, New Hope on Tuesday reported net profit for the year to the end of July of $475.9m, down 56.2 per cent on revenue of $1.8bn, down 34.6 per cent.
While coal sales were up 14 per cent to 8.7 million tonnes, weaker prices – coming off unprecedented prices the year before due to the global energy crisis spurred by Russia’s invasion of Ukraine – put a dent in the bottom line results.
Mr Bishop said production was set to increase in the current year, with the New Acland operation restarting during the past year and producing slightly more than a million tonnes of coal, which will increase to about 2.8 million tonnes of saleable product this financial year.
“So a significant increase, and then that will plateau out in the 18 months following that to around about 5 million tonnes per annum,’’ Mr Bishop said. “At Bengalla, it’s all-but there to the circa-11 million tonnes a year, off the back of its growth profile.
“And then the exciting thing within the portfolio was our recent investment in Malabar, which is in its development phase.
“They’re shipping coal already … and once they get into their longwall pit, that’s when we’ll see production increase significantly there. Since the 2023 financial year we’re effectively doubling our production with good quality, low-cost coal.’’
Mr Bishop said the price for thermal coal had been “quite buoyant”.
“I think we’ll see that continue into the latter half of this calendar year,” he said.
“We see it probably remaining roughly where it is at the moment, and obviously longer term, we see that supply fall off, increase in demand, continuing to underpin the thermal coal price moving forward.”
During the year, New Hope increased its equity position in thermal coal miner Malabar Resources from 15 to 19.97 per cent.
New Hope will pay a 22c per share dividend fully franked, up from last year’s 21c per share. New Hope last year also declared a special dividend of 9c.
New Hope shares closed up 1.7 per cent on Tuesday at $4.32 each.
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