Coronado Global Resources is preparing to adjust its plans following a period of adverse weather impacting its Curragh coal operation in Queensland’s Bowen Basin.
To mitigate the weather impacts to production, the company plans to temporarily idle an additional fleet at the Curragh complex to reduce costs.
Coronado managing director and chief executive officer Douglas Thompson is optimistic these efforts will put the company on a path to rally in the future.
“The impacts from wet weather and subsequent deferral of production to FY25 do not derail our short-term strategic objectives which remain on target, to complete our organic growth projects at Buchanan and the Mammoth Underground at Curragh,” Thompson said.
“These projects we expect will deliver substantially higher production rates from FY25 and will significantly de-risk our operations against weather impacts, mechanical issues and bottlenecks in the future.”
Thompson said Coronado is taking steps to make the company more “market agile”.
“Coronado remains committed to our Curragh complex and Mammoth Underground project, as these significant metallurgical coal assets present substantial long-term value to our shareholders, however, the significant cost imposition placed on all Queensland coal miners from the higher royalties is making these types of investments less competitive,” he said.
“Coronado is fortunate to have our US business unit as a balancing influence on the exposure to the Queensland royalties; and we continue to progress with our expansion plans at Buchanan.”
Saleable production for the 2024 calendar year has been revised to between 15.4–16 million tonnes with the average mining cost per tonne sitting at $105–110, partly offset by the reduction in fleets at Curragh.