Whitehaven will remain a competitive participant in the industry and its semi-soft coking coal is increasingly being sought as a viable alternative to hard coking coal in the steel-making process, Vaile said in the company’s annual report.

“Our Narrabri mine commenced development in early 2010 and the longwall operation began in June 2012,” he said.

“In this short period of time we have built a new, largely local, highly skilled workforce which has achieved some outstanding results.

“The first longwall change-out was completed in July this year, on-time and on budget. By industry standards this was an excellent outcome.

“The mine is now operating consistently at levels approaching its full production rates and preparation is commencing for the second longwall change-out.”

Work to address the quality of the Narrabri thermal coal product was completed recently, ensuring that all thermal coal sold in FY2014 would meet Newcastle benchmark specifications, he said.

Turning to Maules Creek, Vaile said the open cut project would see the company more than double in size, and lower its overall cost of production.

“Securing government approval for our Maules Creek project was a key milestone in the company’s development,” he said.

“One of the best things we can do to future proof our business in these difficult times is to bring on stream the lowest cost production we can.

“Maules Creek achieves this objective.”

Vaile said a legal challenge to the federal minister’s approval decision for Maules Creek did not prevent work starting on the project.

“We are working vigorously to have first coal by the first quarter of CY2015,” he said.

“Our Maules Creek team remains extremely focused on putting the appropriate planning in place to facilitate an on-time and on-budget construction process.”

Vaile defended the quality of Whitehaven’s coal and its future more broadly.

“Our coal is relatively clean and high in energy with low trace elements, low ash, low sulphur and low phosphorous,” he said.

“As the world moves towards cleaner sources of coal it actually benefits both Whitehaven and Australian coal producers more broadly.”