Anglo Pacific Eyes Kestrel Coal Output Rebound After 3Q Fall

By Alex MacDonald

LONDON--Anglo Pacific Group PLC (APF.LN) said Friday that Rio Tinto PLC's (RIO) Kestrel Mine in Australia produced less coal in the third quarter than in the second quarter, as expected, but should rebound in the fourth quarter.

The U.K. and Canada-listed royalty firm said coking coal and thermal coal output fell 43% and 39%, respectively, to 0.54 tons and 0.11 tons in the third quarter, compared with the same quarter a year earlier. This was due to planned work at the mine that was completed in line with expectations.

Similar work was also carried out at Whitehaven Coal Ltd.'s (WHC.AU) Narrabri mine in Australia, in which Anglo Pacific also has a royalty, prompting coal output there to fall as well in the third quarter.

Anglo Pacific reaffirmed that it expects 70% to 75%, or more, of the mine's planned output in the second half of the year will come from Anglo Pacific's royalty area at the mine.

"We are pleased that during the past quarter, both scheduled longwall changeouts at Kestrel and Narrabri were successfully completed without delays and the impact on production did not exceed foreseen levels," said Julian Treger, chief executive of Anglo Pacific.

"We anticipate production levels at Kestrel and Narrabri to rebound in the next quarter, and for second half 2015 production to be in line with our previous expectations."

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October 16, 2015 03:55 ET (07:55 GMT)

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