Centennial’s parent, Thai energy giant Banpu, noted that the average cost of production increased by $US2.36 a tonne to $53.13/t in 2013 and blamed it on lower than planned production.

Banpu said the planned longwall changeover at the Mandalong mine halted output from August to late September while the Springvale longwall mine was briefly disrupted by a bushfire in New South Wales during the December quarter.

The average price received by thermal coal producer Centennial, which sold 38% of its coal on the export market in 2013 compared to 44% in 2012, was $69.75/t – down 4.2% from the $72.78/t average of 2012.

As part of its commentary on 2013, Banpu said the global coal industry was “overwhelmed by excess coal supply situation” while there was sub-optimal performance from the Mandalong and Springvale mines.

“Both underground mines faced equipment and geological challenges that required deployment of corrective measures including installation of bigger and more efficient mining equipment,” Banpu said.