New Hope Group has released its March 2024 quarterly activities report, revealing key milestones achieved at its Bengalla operations in New South Wales.
The Bengalla mine achieved a free on-board cash cost of $73.4 per tonne, a 7.8 per cent reduction from the previous quarter. This was supported by some of the highest production and sales months in Bengalla’s operating history.
“Prime waste movement of 11.6Mbcm (million bank cubic metres) was 4.6 per cent lower than the previous quarter, however run of mine (ROM) coal production was 3Mt, an increase of 23.4 per cent compared to the previous quarter due to a lower ROM strip ratio of 3.9 compared to 5.1,” New Hope said.
“Increased CHPP (coal handling and preparation plant) feed and higher washery yield contributed to saleable coal production of 2.2Mt, a 20.3 per cent improvement on the previous quarter.
“Bypass coal was lower as the CHPP was fully operational following the planned shutdown successfully completed in the previous quarter. Coal sales were 2.2Mt for the quarter, 18.4 per cent higher than the previous quarter due to increased production rates.
“March 2024 was the sixth highest coal sales month in the history of Bengalla mine’s operations.”
The Bengalla mine also received approval from the NSW Resources Regulator to carry out assessable prospecting operations over EL9431. Final environmental due diligence was also completed over the 556-hectare area, and site preparation work commenced.
“Drilling has commenced in early May 2024, beginning with a series of coal quality boreholes,” New Hope said.
Total ROM coal produced at the New Acland mine in Queensland was 0.71Mt, a 55 per cent increase compared to the previous quarter, and total saleable coal production increased to 0.28Mt from 0.23Mt.
“(The) New Acland mine moved 1.9Mbcms of prime overburden material from the existing Manning Vale East pit and the recently accessed Willeroo pit during the quarter, up 12.2 per cent from the previous quarter,” New Hope said.
“(The) New Acland mine has continued to utilise spot rail capacity to deliver product to the port in addition to its contracted volumes. The company anticipates further spot rail capacity being available and, as a result, has updated New Acland mine’s (2024–25) financial year coal sales guidance from 0.66Mt to 0.80Mt.”
New Hope said it is close to acquiring a new 600-tonne class excavator at New Acland to accelerate the short-term ramp-up profile and take advantage of additional spot rail capacity that is expected to become available.
The company also gained access to the Willeroo pit through the Lagoon Creek crossing at the end of February. As a result, mining commenced in March.
In total, New Hope produced 2.5 million tonnes (Mt) of saleable coal and 2.4Mt of coal sales for the March quarter, a 20.7 per cent and 20.8 per cent increase upon the December quarter.
The company closed the March quarter with $218.8 million in underlying earnings before interest, taxes, depreciation, and amortisation, a 21.6 per cent increase from the previous quarter, as well as $198.3 million in cash and cash equivalents and $183 million in fixed income investments.
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