• Centennial Coal Company Limited
• Website: www.centennialcoal.com.au

Industry:

Oil, Gas & Consumable Fuels

Fiscal Year-End:

Jun 10

Centennial Coal Company Ltd (CEY) is an Australian thermal coal producer with numerous operating mines in the western, Central Coast and southern NSW coalfields. Around 80% of coal produced is sold to domestic power stations under long-term contracts, while the remainder is exported principally to Asia. Export sales are expected to grow in coming years as production increases at CEY's export-oriented mines.

Centennial Coal Company Ltd was established in 1989 and listed on the ASX in 1994 as a producer of thermal coal, principally supplying the NSW power industry. In 1998, CEY acquired the Clarence and Blue Mountains Colliery. In 2001, it acquired 50% of the Springvale mine and, in July 2002, the $331M Powercoal Pty Ltd acquisition lifted production capacity to 14Mtpa (CEY 12.5Mt).

Coal operations comprise numerous operating mines. All of the mines are located in the western, Hunter and southern regions of NSW. Centennial is part owner of coal loaders at Port Kembla and Newcastle Port.

CEY is the largest independent pure coal producer listed on the ASX, with coal sourced from Australia. It provides elements of a utility-type investment vehicle in that the majority of its revenues are linked to long-term AUD contracts with domestic electricity generators. It has dominance of supply in the key western and Central Coast districts of NSW. CEY also has exposure to the more volatile export markets via around 20% of production, although this is likely to increase in the future.

About 75% of CEY's current production is sold to domestic electricity producers under indexed, long-term AUD price arrangements, representing around 40% of coal supplied to the NSW industry. CEY is the single largest supplier. The company operates in a highly competitive industry where producers range from global giants (Rio Tinto, BHP, Xstrata) to small private operators.