A mining company has committed to significantly increase fossil fuel output.
Whitehaven Coal recently confirmed it would continue developing both the new Winchester South (200km southwest of Mackay) and Vickery extension projects (25km north of Gunnedah).
“We are progressing these development projects to be ‘shovel ready’, so that investment decisions can be made when appropriate hurdles are met,” Whitehaven managing director and CEO Paul Flynn said in the company’s 2022 annual report.
Vickery has already secured all “primary approvals” and both the mine and capital plans were still being ‘refined’ at the time of publication. The Winchester South project team is finishing up state and federal government approval processes as well as geotechnical and other detailed studies.
Environmental activists estimate these new projects could duplicate coal output within eight years.
“Whitehaven Coal is one of Australia’s largest coal companies and they are planning to double production by 2030 with four major new coal projects. Whitehaven threatens the climate, First Nations’ cultural heritage, waterways and farmland as they expand to dig and burn more coal,” the Move Beyond Coal website said.
The remarks came after Macquarie Group significantly upgraded its coal price forecast for 2023, and expects the commodity’s value to keep rising in the next two years.
“It lifted its 2023 price projection by 58 per cent to an average of US$367.50 (A$565.74). Moreover, Macquarie boosted its coal price forecasts for 2024 and 2025 by 114 per cent and 124 per cent respectively,” Markets Insider earlier reported.
The financial services company expects coal demand to remain higher than supply due to global shortages and developed economies repeatedly paying a premium. This suggests prices are expected to stay elevated for the unforeseeable future.
By the year 2027 thermal coal is estimated to jump by 38 to 114 per cent while long-term price forecasts will soar 43 per cent.
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