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World Coal
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December 2015
Coal News
INTERVIEW
David Moult, Managing Director and CEO, Centennial Coal Co. Ltd
O
ver the past 21 yr,
Centennial Coal has grown
from a small private company to
a serious player in the Australian
coal industry.
World Coal
talked
to David Moult, Centennial’s
Managing Director and CEO, about
the current state of the industry,
Centennial’s part in it and what the
future might bring.
Could you provide a bit of
background on Centennial
Coal’s operations and place
within the wider Australian
coal industry?
In 1989, there was a management buyout
of the Preston mine from Coal and Allied.
Preston Coal operated as a private
company for 5 yr. In 1994, it listed on the
ASX and was renamed Centennial Coal.
The proceeds from the IPO were used to
acquire three mines from Blue Circle
Southern Cement.
Centennial is known for acquiring
unprofitable or underperforming
coal assets and securing a new lease
of life through co-operative
employee relations, strategic investment
and clever mine design and techniques.
In 2002, Centennial made the
significant purchase of Powercoal,
the New South Wales government’s coal
mines, representing an investment of
AUS$331 million and almost tripling
annual coal production.
Over a period of 21 yr, Preston Coal, a
AUS$2 million, 150 000 tpa mine
employing 30 people, grew into
Centennial Coal, a 20 million tpa,
AUS$2.5 billion, S&P ASX 100 company.
In 2010, Centennial became a 100%
owned subsidiary of Banpu Public Co.
Ltd, Pan-Asia’s largest independent
energy company.
Centennial currently employs 1500
people and has reported JORC reserves of
395 million t. Centennial has a long-term
commitment to the New South Wales coal
mining industry. Therefore, we recognise
our business must be economically,
environmentally and socially sustainable.
Most of the recent news
from the coal industry has
been pretty negative. What
measures have Centennial
taken to deal with the
current downturn in the coal
industry?
Centennial has focused on reducing costs
and improving productivity, while
maintaining a focus on safety and the
environment. This requires persistence,
diligence and accountability, while also
fostering an environment that encourages
innovative systems and work practices.
What would your message
be to the industry’s
detractors?
As the globe’s most prevalent and widely
distributed fossil fuel, coal provides
energy security across many nations.
Affordability and price-stability are also
key reasons why nations rely heavily on
coal-based electricity generation. This
makes coal an attractive fuel for baseload
generation and it is often the first source to
be dispatched on electricity grids around
the world. The economic reality is coal will
continue to be a significant part of the
energy mix well into the future.
As coal miners, we understand and are
very aware of our responsibilities to the
environment and the community. We
acknowledge we do not always get it
right; however, our intent is to always
operate our mines responsibly and
minimise our environmental footprint,
while advocating our industry’s positive
economic benefits.
When do you see the
downturn ending?
I believe that we have been bumping
along the bottom of the market for some
time now. While we have seen some
significant changes in the global market
reflecting changes to government policy in
the US and a cooling of the Chinese
economy, there is still strong global
demand for coal in growing economies,
such as India.
The repositioning of the Australian
dollar and the continued strong demand
for coal will, over the next two years,
slowly return the market to a new
economic norm; however, it will not reflect
the lofty heights of the boom.
You say on your website
that: “our successful
growth […] is linked to
our sustainability journey”.
Talk me through what
you mean by that and
why sustainability is so
important?
Productive and efficient mining operations
will form the basis of our long-term
growth and value creation. They will
ensure that we are resilient and
sustainable. However, this is diminished if
we do not adequately protect our people
and the environment we operate in. Our
approach to safety, environment and
community management remains resolute
across the company.
The past two years has been about
consolidating our assets to maximise
synergy and efficiency, while we also
continue to invest in our future growth
through new mining area applications and
infrastructure projects.
