New Hope Group AGM
17 November 2016
At its annual general meeting in Ipswich today, the New Hope Group has today reported that it has managed through the difficult coal market conditions of the past financial year.
In spite of the tough challenges being felt throughout the industry, New Hope Chairman Robert Millner told the meeting the company is ideally placed to take advantage of Asia’s significant growth in clean coal consumption following the acquisition of a 40 per cent interest in the Bengalla coal mine in New South Wales.
"We have a history of buying assets at the right time. Since purchasing 40 per cent of Bengalla in March, the price of thermal coal has jumped by more than US$40/tonne," he said.
"Investing in the Bengalla coal mine when coal prices were at a low has had an immediate positive impact to the group’s financial performance.
"The high quality coal that New Hope produces will be in demand for decades, particularly in the growing economies of North and South East Asia."
New Hope Chief Executive Officer Shane Stephan said Chinese government action restraining supply of coal in its domestic market has driven coal price increases. Although most market commentators believe that pricing will moderate over the next few months it is clear that coal prices will be significantly higher in FY2017 than they were in FY2016.
"In the medium-term, we expect demand for high-quality export coal to continue to grow particularly in North and South East Asia. The Group is well-placed to take advantage of attractive opportunities created by these market conditions.
"As a result, New Hope will continue to focus on safe and efficient coal production during FY2017.
"Obtaining the approvals for the New Acland Coal Mine Stage 3 Project remains a key priority for the company.
"We will continue to work with the relevant government authorities and in consultation with the community, to advance approvals in FY2017." Mr Stephan concluded.
• Australian owned and operated diversified energy company
• Based in Ipswich since 1952
• One of Queensland’s largest ASX listed corporations by market capitalisation (A$1.454 billion)
• Invests in broader Australian energy sector with interests in coal, oil, port, exploration, and agriculture
• Direct workforce of about 550 and approximately 2,850 jobs created through suppliers and contractors
• Controlling interest - Washington H Soul Pattinson
• Awarded the 2016 ABA100 Winner of the Australian Business Award for Sustainability
• Awarded the Australian Mines and Metals Association (AMMA) 2016 Industry Award for Health and Wellbeing
• 45 employees with over 25 years continuous service
New Acland Mine
• Operations began in 2002
• New Acland Safety record is currently superior to industry average and has been achieved with a focus on Behavioural Safety Programs
• Produces thermal coal of approximately 5 Mtpa using thin seam mining technique
• About 97 per cent of New Acland coal is for export, while around 3 per cent goes to domestic customers
• Provides direct jobs for around 275 locals, 507 contractors, and contributes to 2300 more indirect jobs
• Local workforce – no fly-in fly-out workers
• Contributes $300 million annually to the southeast Queensland economy, and > $100 million annually to the Darling Downs economy
• Industry leading rehabilitation program returning mined land back to sustainable grazing supported by scientifically controlled cattle grazing trials
• All water used in New Acland’s mining operations is recycled wastewater purchased from the Toowoomba Regional Council’s Wetalla treatment plant – the only borehole groundwater used on the site is for human consumption