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STRONG DEMAND AND STRONG COMMUNITY CONNECTIONS: WHITEHAVEN COAL IS HERE FOR THE LONG GAME
13 February 2023 | BBMC Events
In a strong start to 2023, the Bowen Basin Mining Club’s first luncheon hosted Whitehaven Coal’s CEO and Managing Director, Paul Flynn, to a sold-out audience of suppliers, industry leaders and decision-makers.
While the Bowen Basin has heard plenty about Whitehaven’s Winchester South project as it progresses through approvals, for many it was an introduction to the company’s leadership and long-term outlook – and what a bright outlook it is.
As Australia’s largest independent producer of high-CV coal, Whitehaven Coal’s current Gunnedah Basin operations proudly claim their product as ‘the best thermal coal that you can buy’. A diversified client base across Japan, Korea, Taiwan and Southeast Asia would agree, as would the company’s track record of growth.
Mr Flynn painted a positive picture of Whitehaven’s future in the market, despite popular predictions of coal’s demise. While all of the company’s product historically goes to overseas power generation, the company isn’t expecting demand to subside for quite some time.
“We all know there’s a transition coming, but coal will be around for a lot longer than the media narrative indicates. There’s increasing demand in our key markets, and little foreseeable increase in
supply. On that basis, prices just can’t go backward in the long run in that kind of market situation,” said Mr Flynn.
“In the public discourse of energy transition, the headlines grab all the attention and there isn’t any focus on the actual detail of delivery. Every time someone asks me about ongoing demand for coal, I refer to customer demand. And that’s not changing yet, realistically.”
“We acknowledge we have a role to play when it comes to reducing or offsetting our environmental impacts but equally, without coal, the lights go off for our customers. So as a company, we only sell to countries that are signatories to the Paris Accord. All of our energy coal goes to HELE power stations and in doing so we help deliver real emissions reductions.”
From the global perspective to the local, Mr Flynn reiterated the company’s commitment to getting the greenfields Winchester South Project off the ground – a high-quality metallurgical product, strategically located to rail, water and power, and presently progressing through state approvals following another public comment period closing in December 2022.
With a long and proud commitment to supporting local suppliers, local employment and Indigenous participation in the workforce, Whitehaven enjoys community and stakeholder support in the Gunnedah Basin, and hopes to bring that model to the Bowen Basin with the Winchester South Project.
“We try to craft our business proposition around what’s important for our stakeholders – whether that’s in our rehabilitation projects, supplier engagement, economic contribution or the taxes we pay. Coal mining for us is not a zero-sum game: there needs to be a net benefit to the community and our stakeholders,” said Mr Flynn.
The presentation ended with a rousing call for industry to step up and advocate rather than shying away from the reality of our role in keeping industry moving and continuing society’s progress.
“There’s plenty of opportunities for companies like ours who are willing to push along and get things approved, but we need to step up our industry advocacy. I encourage you all to play your part in educating others about the fundamental role we play in energy security and economic contribution.”
BBMC Director Jodie Currie couldn’t agree more, saying the time was right for industry to call out popular ideas that were simply out of touch with reality.
“Unfortunately, we see commentary around the future of coal and net zero aspirations where ideology doesn’t marry up with reality. The technology that will take us to a fully decarbonised world may not even be invented yet, let alone able to be commercialised at scale.”
The hot topic of decarbonisation and future projects is explored further in this year’s Bowen Basin Mining Club Yearbook, which was also launched at the event. As a premium coffee-table publication with contributions from industry thought leaders including the Queensland Resources Council, World Coal Association, and industry powerhouses BHP, Anglo American, Whitehaven and more, the Yearbook will be distributed across the Bowen Basin this week, and available online via www.bbminingclub.com/yearbook.
The next BBMC event will be held in Mackay on March 30, featuring a presentation from BHP. Tickets will be on sale next week via www.bbminingclub.com.
