Whitehaven Coal’s (ASX: WHC) Queensland mines staged a strong June-quarter recovery, with Blackwater and Daunia driving output back to the top of full-year guidance.

Across the group, Whitehaven produced 40.3 million tonnes of ROM coal in FY26 at a unit cost of about A$132 a tonne.

Queensland managed ROM production rose 41 per cent on the March quarter to 5.7 million tonnes, after weather had disrupted the prior period.

Full-year Queensland ROM production reached 20.1 million tonnes, in line with the previous year and at the top of guidance.

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Queensland equity sales of produced coal were 3.2 million tonnes for the quarter and 12.5 million tonnes for the 2026 financial year.

Blackwater lifted June-quarter ROM production 54 per cent on the March quarter to 4.0 million tonnes, recovering from earlier weather-related delays.

The mine produced 13.9 million tonnes for the year, with quarterly sales of 2.7 million tonnes, down 13 per cent on shipment timing.

Main image: Blackwater Mine: courtesy Whitehaven Coal

Daunia produced 1.7 million tonnes in the quarter, up 17 per cent, and 6.2 million tonnes for the year.

Tailwinds

Favourable mining conditions lifted volumes ahead of a planned transition to the mine’s southern domain in the 2027 financial year.

Daunia’s quarterly sales rose 21 per cent to 1.3 million tonnes as processing and shipment timing aligned.

Queensland operations achieved an average price of A$247 a tonne for the quarter, up 2 per cent, and A$229 for the year.

Metallurgical coal realised US$176 a tonne, or 74 per cent of the Platts premium low-vol hard coking coal index.

Whitehaven Coal chief executive and managing director Paul Flynn said the outcomes showed the quality and resilience of the portfolio.

“Both Queensland and New South Wales operations achieved ROM production and sales outcomes at the top end of guidance, demonstrating the quality and resilience of our asset portfolio.

“Our balance sheet remains robust. During the quarter, the second US$500 million deferred acquisition payment to BMA was paid, and we completed the refinancing of our debt facilities, substantially reducing our cost of debt, diversifying funding, and extending maturities.”

Whitehaven advanced its Queensland growth pipeline, progressing the Winchester South metallurgical coal project and studying synergies with the nearby Daunia mine.

Regulator involvement

Queensland’s environment department approved the project’s draft environmental authority, while objections to related approvals remained before the Land Court, with judgment reserved.

During the quarter Whitehaven paid BMA the second US$500 million deferred instalment for the Daunia and Blackwater acquisition.

A further US$58 million contingent payment followed on 2 July 2026, with a US$100 million final instalment due in April 2027.

Whitehaven said its Queensland metallurgical coal portfolio remained well placed to benefit from improving market fundamentals and supportive demand.

Prices for premium coking coal strengthened late in the quarter as Chinese steel mills lifted demand following the Shanxi mine accident.