Collie Coal Records Significant Profit Jump despite Challenges Ahead

Collie‘s Premier Coal has made a remarkable financial turnaround, posting a substantial profit surge despite impending challenges on the horizon. According to accounts filed with the corporate regulator, WA’s largest coal miner, Premier Coal, has returned to profitability after incurring significant losses the previous year. The company, owned by the Chinese firm Shandong Energy Group, reported a profit of $2 million in the 2023 financial year, contrasting with an $84 million loss in the preceding year.

The notable improvement in performance for Premier Coal was accompanied by a 52% increase in sales revenue, which reached $291 million in the same period. Despite facing difficulties in 2022 due to adverse weather conditions and safety issues impacting its supply to the Collie and Muja power stations operated by Synergy, the company managed to turn around its financial status.

As a key supplier to state-owned power generator Synergy, Premier Coal holds a significant 25-year contract to provide coal to the Muja and Collie power stations, set to expire in 2030. Additionally, the company supplies coal to several other entities, including Bluewaters Power station, South32’s Worsley Alumina, and Adbri’s lime plant in Munster.

However, challenges lie ahead for Premier Coal as the Western Australian government plans to phase out coal-fired power generation by the end of the decade. This decision has accelerated the need for rehabilitation efforts, leading Premier Coal to increase its provision for mine closure rehabilitation to $56 million from $43 million.