Diversified miner South 32 produced 24.97 million mt of thermal coal in the nine months ended March 31, slipping 7% on the year, according to the producer's quarterly report released Thursday.
Thermal coal production for the January-March quarter also fell 16% on the year to 7.93 million mt, also 5% down from the previous quarter.
South 32's South African Energy Coal unit produced 24.07 million mt of thermal coal during the nine-month period, down 7% on the year, while production for the March-ending quarter also dropped 17% on the year and 5% on the quarter to 7.69 million mt.
The mine cited lower output from the Khutala opencast mine's planned closure, as well as underground development at the same mine reducing production. There was also a drop in contractor activity at the Wolvekrans Middelburg Complex.
The South African unit sold 11.6 million mt of export thermal coal during the nine-month period, dropping 5% year on year. Sales for the January-March quarter fell 18% on the year and 8% from the previous quarter to 3.57 million mt.
South African domestic coal sales for the July-March period slipped 7% on the year to 13.08 million mt, with quarterly sales at 4 million mt, down 19% on the year and 17% from the previous three-month period.
The miner said its South African export thermal coal output guidance for the 2015-16 financial year -- running from July to June -- remained unchanged at 15.3 million mt, compared with 16.15 million mt the previous financial year, while domestic coal production from the country was also still expected to be 16.65 million mt for the year, down from 18.12 million mt in FY 2014-15.
Thermal coal production from South 32's Illawarra Metallurgical Coal unit in New South Wales, Australia, fell 16% year on year to 896,000 mt for the nine-month period, with production for the third quarter at 238,000 mt, up 29% on the year, but down 6% from the October-December quarter.
The Australian unit sold 973,000 mt of thermal coal during the July-March period, falling 9% on the year, with sales for the January-March quarter at 364,000 mt, climbing 34% on the year and 67% from the previous quarter.
South 32 said its thermal coal production guidance for the financial year from the Illawarra mine in Australia remained at the previously revised 1.35 million mt, compared with 1.47 million mt the previous year.
MET COAL OUTPUT DOWN 10% ON YEAR
South 32 said its metallurgical coal production from Illawarra for the July-March period dropped 10% on the year to 4.94 million mt, although production for the March quarter rose 2% form the same period of 2015 and increased 35% on the quarter.
The miner attributed the lower nine-month production to challenging geological conditions at the Appin and Dendrobium mines in the first six months and three planned longwall move completed during the period.
Met coal sales from the unit also slipped 10% from the previous July-March period to 4.75 million mt, with sales for the third quarter of the financial year at 1.6 million mt, falling 12% year on year, but up 39% from the second quarter.
BHP said its met coal production guidance for the year from the Illawarra mine remained at the previously revised 6.9 million mt, from the previous financial year's guidance of 7.45 million mt.
