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Whitehaven Coal commences coal production at Narrabri Mine

Published: 12:28 28 Jun 2010 AEST

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Whitehaven Coal (ASX: WHC) commenced coal production today at its Narrabri Mine in north-west New South Wales with the first of the mine’s three continuous miners cutting coal.

The Narrabri Mine is located 28km south of Narrabri and when in full production is expected by Whitehaven to produce approximately 6 million tonnes per annum (Mtpa) of low ash, high energy, low sulphur thermal and PCI coal for the export market.

Initial production using continuous miners will be 0.5 - 0.7Mtpa.

Tony Haggarty, managing director, said “this is a very significant day for Whitehaven Coal and the broader Narrabri community.”

“During the past three years Whitehaven has invested approximately $227 million to deliver a modern underground mine with the highest safety levels and most efficient mining practices available,” he said.

“The environmental and planning processes we have participated in have been significantly advanced in recent years and we are pleased to be able to deliver a project which meets, and will continue to meet the stringent guidelines now in place."

“While ground conditions have caused some delay and increased cost in relation to construction of the drifts for seam access, the remainder of the project has been developed on time and on budget," he added.

A rail loop and associated coal handling and processing equipment has been constructed as part of the development to facilitate the transport of coal from the project site to Newcastle for export.

Stage Two plans for the project include the production of an additional 5.3 million tonnes per year from longwall mining.

More than 120 people were employed during the mine’s construction phase and more than 25 contracting businesses were involved in the development. Full time employment is expected to rise to 208 as the mine moves into full production.

“We are very pleased with the quality of people we have brought on board and are continuing our recruiting drive to support the increasing production at the mine,” Haggarty said.

Narrabri is a Joint Venture with Whitehaven (operator) 70.0%, Electric Power Development Co. Ltd 7.5%, EDF Trading 7.5%, Upper Horn Investments Limited 7.5% and Daewoo International Corporation and Korea Resources Corporation 7.5%.

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