Leading Australian producer of premium-quality hard coking coal for steelmaking with its lllawarra Metallurgical Coal asset in Australia, South32 has announced its metallurgical coal production and sales results for the six months ended 31 December 2021. Illawarra Metallurgical Coal saleable production decreased by 23% or 951KT to 3,145KT in the December 2021 half year as South32 completed an extended longwall move at the Dendrobium mine in the current quarter. We made no energy coal sales of low-margin coal wash, with elevated freight rates making them uneconomic in the period.Lower December 2021 half year production and sales volumes, and higher price-linked royalties arising from the significant increase in prices year to date, are expected to result in our Operating unit costs for the December 2021 half year being approximately 20% above our FY22 guidance.South32 added “The implementation of additional COVID-19 workforce restrictions in New South Wales has the potential to further impact labour availability across the June 2022 half year.”
Leading Australian producer of premium-quality hard coking coal for steelmaking with its lllawarra Metallurgical Coal asset in Australia, South32 has announced its metallurgical coal production and sales results for the six months ended 31 December 2021. Illawarra Metallurgical Coal saleable production decreased by 23% or 951KT to 3,145KT in the December 2021 half year as South32 completed an extended longwall move at the Dendrobium mine in the current quarter. We made no energy coal sales of low-margin coal wash, with elevated freight rates making them uneconomic in the period.Lower December 2021 half year production and sales volumes, and higher price-linked royalties arising from the significant increase in prices year to date, are expected to result in our Operating unit costs for the December 2021 half year being approximately 20% above our FY22 guidance.South32 added “The implementation of additional COVID-19 workforce restrictions in New South Wales has the potential to further impact labour availability across the June 2022 half year.”
