The weighted average $US free-on-board price for hard coking, semi-hard coking and PCI coal from the company’s Curragh open cut mine in Queensland’s Bowen Basin declined by 59%.
Butel said the outcome was in line with other settlements and maintained market price relativity.
“Curragh metallurgical sales volumes for the 2008-09 financial year are expected to be at the lower end of the previously stated range of 6.5-6.9 million tonnes, with demand from customers in the second half reduced due to the global economic crisis,” he said.
Market prices have fallen dramatically, from $US285-300/t FOB for hard coking coal in the 2008 Japanese financial year to $115-129/t for the 2009 JFY; semi-hard has fallen from $US245-255/t to $115-129/t; and PCI coal has dropped from $240-245/t to an estimated $85-90/t.
While prices have slipped, Butel said there were signs the crisis that plagued the industry throughout 2008 was now beginning to ease.
In the March quarter, overburden removal from Curragh was 9.7% lower than the previous quarter due to unplanned maintenance on two draglines.
Coal production was 2.16Mt, 13.5% below the previous quarter due to wet weather at the start of the year.
At New South Wales' mine Bengalla – which Wesfarmers has a 40% interest in – production was also hit by wet weather, with production dropping 19.6% to 450,000t.
The news was better at Wesfarmers’ Western Australian mine, Premier, with overburden removal jumping 5.1% and output increasing 4.1% to 880,000t.
In development news, Wesfarmers continues to look at the feasibility of expanding Curragh to increase export tonnages to 8-8.5Mt per annum.
Wesfarmers closed down 4% at $A20.40 yesterday.
