South32 expects to produce five per cent less metallurgical coal this year than forecast because of difficult strata conditions and industrial action at its Appin Mine in NSW.
The company says it expects to produce seven million tonnes of metallurgical coal in 2022/23, down from 7.4m tonnes previously forecast.
In the September quarter, South32 coal production rose one per cent to 1.595 m tonnes, with higher output from its Dendrobium mine near Mt Kembla offsetting the drop in production from Appin.
The nearly 500 production and engineering employees at the underground mine engaged in a half-shift stoppages in August to secure better pay and conditions.
After the close of the quarter, South32 finalised a new four-year enterprise agreement with the union.
South32 said all other guidance was unchanged, including a 13 per cent full-year increase in copper production.
South32 shares were down 0.7 per cent to $3.695 at 1.22pm AEDT on Monday, while the mining sector was up 2.7 per cent.
