Queensland Coal’s underlying EBIT came in at $2 billion compared to $155 million in 2015. Revenue for the 2016 half was $3.3 billion compared to $1.6 billion previously. 

The Queensland Coal unit costs of production dropped 4% to $56 per tonne, underpinned by a reduction in labour and contractor costs, favourable inventory movements and increased equipment and wash-plant utilisation.

This was partially offset by a stronger Australian dollar over the half year.

Unit costs for the 2017 financial year are expected to be $54/t as a result of unfavourable exchange rate movements.

NSW Energy Coal unit costs increased 9% to $46/t due to lower volumes and a stronger Australian dollar, which more than offset a reduction in labour costs and favourable inventory movements.

Metallurgical coal production increased 1% to 21 million tonnes, and energy coal production decreased 4% to 14Mt, in the December 2016 half year.

Strong metallurgical coal production at four Queensland Coal mines offset the cessation of production at Crinum.

Excluding Crinum, production increased by 8%.

 

Energy coal production decreased at New South Wales Energy Coal, reflecting in-pit and run-of-mine inventory drawdowns in the prior period, and was partially offset by a stronger performance at Cerrejon mine in Colombia.