Wesfarmers Resources’ division, which increased revenues for the year to June 2012 by 19.9% to $2.1 billion, managed to also increase EBIT by 19% for the period to $439 million.

Coal production from Curragh and its 40% owned Bengalla mine in New South Wales came in at 14 million tonnes for the year, compared to the 13.6Mt for the previous year.

Wesfarmers Resources managing director Stewart Butel said the export market would be difficult in the short term, with uncertain economic conditions in Eurozone and slowing growth in China.

This had affected global steel demand and the A$/US$ exchange rate volatility had created uncertainty.

Butel said while the coal business may encounter some short-term headwinds, it was fundamentally sound with expansion approvals for its projects coming on stream and enterprise agreements locked in with its employees.

Curragh clinched a 4% increase for its metallurgical coal in the September quarter with the majority of customers.

For the July to September 2012 quarter, weighted average free-on-board US dollar contract prices of Curragh metallurgical coal (hard coking, semi-hard coking and pulverised coal injection) would increase by approximately 4% compared to the April to June 2012 quarter prices, the company said in a statement.

All of Curragh’s contracted tonnage for this quarter is under the quarterly pricing mechanism.

“Long-term export market fundamentals remain sound,” Butel said.

“Feasibility studies for ‘next-stage’ mine expansions at both Curragh and Bengalla are continuing.”

Increased production volumes are being driven by mine expansions, Butel said.

Curragh expansion to 8.5Mtpa metallurgical coal exports was completed within budget and it achieved record production and sales in Q4 FY12.

Bengalla Stage 1 expansion to 9.3Mtpa ROM (7.5Mtpa product) was also completed on time and within budget.