Sat. Sep 23rd, 2023
    New Hope Mining Explores Opportunities for Coal Sales in Europe

    New Hope, a mining company based in Australia, is preparing to enter new markets for the sale of coal from its recently opened pit in Queensland. The company’s chief executive, Rob Bishop, expressed plans to expand beyond traditional buyers such as Japan and Taiwan, stating that there is an opportunity to sell coal to Europe if the demand exists. Bishop noted that recent opportunities for deal-making, such as the sales process for two coal mines jointly owned by BHP Group and Mitsubishi, did not align with the company’s goals.

    New Hope recently commenced mining operations at the Manning Vale East Pit as part of its New Acland Stage 3 project. The project faced delays due to legal challenges from environmental groups. Bishop stated that the company aims to assess different markets for the coal extracted from the pit, with some of the highest-ash material potentially being sold to China. He also mentioned that New Hope will initially sell coal through the spot market for immediate delivery while the new operation is being established.

    The company expects to produce nearly 1 million metric tons of coal from the mine by June 2024. Bishop expressed confidence in the demand for the product, highlighting that the company does not anticipate any issues with selling it. Once consistent production is achieved, New Hope aims to secure long-term, high-volume contracts to obtain better prices compared to spot sales.

    New Hope is also expanding its Bengalla mine in New South Wales. Bishop emphasized that the company’s focus is on completing growth projects that require modest capital and have the potential to double production. Despite the challenges in securing traditional sources of financing for coal producers, Bishop stated that New Hope has funding options available if acquisition opportunities arise.

    Bishop noted that the company might be interested in increasing its stake in Malabar Resources, an unlisted company developing an underground mine for steelmaking coal in New South Wales. Although New Hope currently has no immediate plans to acquire the business, Bishop expressed enthusiasm for the potential expansion of their involvement with Malabar Resources.

    Source: Rhiannon Hoyle ([email protected])


    Spot Market: A market where commodities are bought and sold for immediate delivery.

    High-Volume Contracts: Contracts that involve large quantities of a particular commodity or product.

    Traditional Sources of Finance: Conventional methods of obtaining funding, such as bank loans or equity investors.

    Steelmaking Coal: Coal used in the production of steel.

    Underground Mine: A mine where the extraction of minerals or resources occurs beneath the surface of the Earth.


    Rhiannon Hoyle, The Wall Street Journal