Cumnock reports record production

GLENCORE Australia subsidiary Cumnock Coal (80% Glencore owned) reported revenue of $104.1 million for the year ended December 2001, and profit before tax of $417,094.

Staff Reporter

Cumnock said production was exceptionally good during the year, with record ROM production and also a record saleable production. The prior best year for production was 1997 when the company was mining from both the underground resource and also from the south open cut lease.

 

Development activities continued to plan and should continue to ensure longwall float through to longwall 21. The company does not anticipate any development related delays to affect longwall extraction.

 

“Due to the slow recovery of Asian economies the period saw a weakened export market particularly in thermal coal. The company has therefore continued to focus on the higher priced semi-soft market,” directors said in a statement.

 

“Overall, the outlook for global coal markets is strengthening and this will probably remain so during the balance of year 2001. Our marketing personnel continue to predict a price increase in the order of 20%. Indeed recent settlements have been representative of an increase of this magnitude.”

 

The company also reported an increase in lost time injury frequency rate increased during the period but said it does not consider the lost time injury frequency rate to be reflective of the improvements in safety management during the period.

 

“We continue to endorse safety at the highest level and this year has seen the board continuing to drive the implementation of the new coal mines regulations and compliance with OH&S standards.”

 

Only two days were lost at the operation due to local industrial issues, and no days were lost due to national stoppages.

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