Managing Director's report
Coal & Allied reported a record financial result in 2008 that was built on the back of saleable production of 25.1 million tonnes, an increase of 1.2 million tonnes from 2007. All operations improved production when compared to 2007, as the weather events of that year were neither as frequent nor severe in 2008. Production was again constrained by available capacity through the Hunter Valley coal chain, which contributed to sales remaining relatively flat when compared to the prior year. Without these capacity constraints, we remain well placed to ramp up and increase production with only modest capital expenditure.
Another outstanding result for Coal & Allied in 2008 was our improved safety performance. Coal & Allied's operations achieved a significant improvement in their safety performance in 2008, with a 27 per cent reduction in the All Injury Frequency Rate to 0.59 injuries per 200,000 hours worked (2.95 injuries per million man hours worked), and a 38 per cent reduction in the severity of injuries.
Of note, Bengalla reported just one injury in 2008 which occurred in December - which means the site operated for almost 12 months injury free.
Coal & Allied had some notable safety achievements in 2008 including:
• Bengalla being awarded the Esprit de Corp award for best morale and willingness to help others at the NSW Rescue Challenge
• Mount Thorley Warkworth hosting and coming runner-up in the Hunter Valley open cut mines rescue competition in November
• Mount Thorley Warkworth being awarded the 2008 NSW Minerals Council Safety Innovation Award for its Self-Locking Heavy Equipment Jack.
Safety is a core value to Coal & Allied, and we will continue to strive for a zero injury workplace - for our employees, contractors and visitors to our operations.
Coal & Allied sites are continuing to work on ways to reduce greenhouse emissions and implement energy improvement programmes. We also contribute to a range of projects that support the research, development and deployment of clean coal technologies including the voluntary contribution of funds to the COAL21 levy.
Last year we celebrated nine years of the Coal & Allied Community Trust, and relaunched the programme for a further three years. Since we set up our first trust in 1999, Coal & Allied has invested more than $7 million in 77 projects. Key projects funded in 2008 included the Community Grants Officers Programme in every Upper Hunter shire. Community Trust initiatives are selected to enhance business, economic, vocational learning, personal development and environmental outcomes in the Hunter Valley. Coal & Allied is proud to support its neighbouring communities in many ways, including the Aboriginal Development Consultative Committee and each site's Community Consultative Committee.
Coal & Allied has been a sponsor of the National Rugby League team, the Newcastle Knights, since June 2005. In 2007 the parties revamped their sponsorship as a 'Community Alliance' and created a partnership that gives back to the Newcastle and Hunter Valley communities through programmes that focus on health and fitness, education, the environment and indigenous student mentoring. During 2008 Coal & Allied worked with the players to provide activities including three Hunter Valley community blitzes, six mini clinics, an environment-themed 'green game' and indigenous student programmes.
2009 promises to be a challenging year but we remain confident on market demand for our quality coal products and our ability to supply competitively. Our focus will remain on creating value for our shareholders, while always ensuring that our attention never waivers from being safe and sustainable. We will also continue our commitment to the environment and partnerships with local communities.
Bill Champion
Managing director
