PERTH (miningweekly.com) − Increased demand from other regions in Asia would offset the weaker demand for coal from disaster-hit Japan in the next six to 12 months, Australian miner Coal & Allied said on Wednesday.

The Rio Tinto subsidiary said in its quarterly results statement that some of its customers had been affected by the earthquake and tsunami last month, but that it was working with those customers to reschedule vessels and to assist in managing the supply in the future.

During the quarter ended March, Coal & Allied’s share of total saleable production was more than 4,6-million tons of coal, which was an 18% decrease on the previous quarter, but a 10% increase in the previous corresponding period.

The miner said that its Hunter Valley operations’ saleable coal production was 20% lower than the previous quarter, and 1% lower than the previous corresponding period at 2,5-million tons.

The decrease could be attributed to the pit sequence change in the fourth quarter of last year, aimed at delivering increased coal production in the quarter, and delayed prime overburden movement, owing to above-average rainfall, which resulted in low blasted inventory in early 2011.

While the Mount Thorley Warkworth project’s saleable coal production was 18% lower than the previous quarter, it was a 25% increase on the previous corresponding period, Coal & Allied said.

This Mount Thorley Warkworth production was lower during the quarter owing to the carryover impact of reduced prime overburden movement, late in 2010 as a result of the wet weather, combined with water issues in one particular pit, which required drainage works, resulting in subsequent delays to coal production.

At the Bengalla operation, saleable coal production was 10% lower than the previous quarter, and 22% higher than the previous corresponding period. Coal & Allied noted that Bengalla’s lower production during the March quarter was attributable to mining less productive passes, compared with the prior quarter.

Coal & Allied’s share of semi-soft production decreased by 13% from the previous quarter, and 15% on the March quarter in 2010, largely owing to coal seam presentation.

However, the miner noted that semi-soft production continued to represent around 20% of Coal & Allied’s attributable saleable production.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.