OREANDA-NEWS. January 23, 2015. Business Spectator reported that Whitehaven Coal has achieved record coal sales in the first-half, despite a slight fall in production in the same period, but has warned prices for thermal coal will remain under pressure from weakening Chinese demand.

In the three months to December 31st, Whitehaven's managed ROM coal production came to 2.196 million tonnes, which represents a 33 % decrease on the previous corresponding period and brought the miner's first-half production to 5.656 million tonnes - a 5 % fall from the first half of the previous year.

Managed coal sales came to 2.949 million tonnes in the quarter, a 7 % fall on the previous corresponding quarter. However, the result propelled sales for the first-half to a new record high of 5.995 million tonnes, a gain of 6 % on the previous corresponding half.

Managed saleable coal production came to 2.380 million tonnes in the quarter, which pushed the first-half result to another new record of 5.669 million tonnes, a 9 % lift on the first-half of the previous year.

Whitehaven said that it achieved an average price of USD 87.56 a tonne from sales of its metallurgical products in the December quarter and it expects the price for these products in the next quarter to be in the range of USD 86 and USD 88 a tonne.

The coal miner noted the impact of recent sharp falls in the oil price on global energy markets, saying thermal coal’s position as the lowest cost source of energy for power generators has gone some way to limiting the limited the negative impact on pricing in recent months.

It said that "There is growing evidence of reduced export growth from Indonesia offsetting increased Australian exports."

Whitehaven said that weakening demand from China has been offset by increased demand elsewhere in Asia and in India.

The group expects "a stable to gradual increase" in the price for its thermal coal qualities over the next year, although conceded the challenging markets make forecasting difficult and prices for low quality thermal coal will likely remain under pressure subject to Chinese demand.

Whitehaven said it does not expect to sell any of its high quality coals to China in the next year.

The coal miner achieved a milestone moment during the quarter with the first coal was railed from its long-gestating Maules Creek mine in December, three months ahead of schedule.

Construction activity at the mine is said to be progressing ahead of schedule and was 87 % complete at the end of December.

Upon its completion Maules Creek will be one of the lowest cost open cut coal mines in Australia, with Whitehaven eyeing an initial production rate of 6 million tonnes per annum.