Whitehaven Coal : 23 Sep 2016 - 2016 Annual Report (8.31MB PDF)

WHITEHAVEN COAL‌‌‌‌‌‌‌‌

ANNUAL REPORT 2016

Whitehaven Coal is a producer of some

of the world's highest quality coal.

Welcome to the 2016 Annual Report. This year we achieved record production, recorded a modest but welcome profit and reduced the Company's debt. As a producer of some of the world's highest quality coal, Whitehaven is well on the way to achieving its strategic goal of becoming the largest independent coal producer in Australia. With the commercial declaration of production from Maules Creek on 1 July 2015, the company is positioned to continue growing over the next three years.

Coal plays a vital role in meeting global energy and industry demand - helping to heat our homes, light our cities and power modern technology. Nowhere is demand for Australian coal stronger

- including Whitehaven's - than Asia where around 361 million people in the

region have no electricity, according to the IEA and Minerals Council Australia. Australia's world-class coal is also in demand for its high energy content, which makes it the preferred fuel for high efficiency low emission (HELE) technologies. HELE technology reduces CO2 emissions by up to 40%¹.

In addition to reporting on company performance, we aim to show that Whitehaven's innovation and world- class mines are helping provide the high-quality coal that will be part of the global energy mix for many years to come.

In an effort to keep this Annual Report succinct, further information on these matters, not included in this report, can be found on our website: www.whitehavencoal.com.au.

GUIDANCE FORFY2016 ACTUAL OUTCOME

THESUPPLIER OF SOME OF THE

WORLD'S HIGHEST QUALITY COAL

SEE PAGE 20

MAULES CREEK USES WORLD-CLASS MINING FLEET

SEE PAGE 26

USING WORLD-CLASS EQUIPMENT, NARRABRI IS ONE OF THEMOST PRODUCTIVE UNDERGROUND MINES IN AUSTRALIASEE PAGE 30

Maules Creek Mine 1ACA Low Emissions Technologies Ltd Assessment July 2015

OVERVIEW P2

STRATEGY P12 OPERATIONS P24 SUSTAINABILITY P34

RESOURCES

AND RESERVES P54

FINANCIAL REPORT P62

Whitehaven Coal Annual Report 2016/1

SECTION 1

PROFIT

COAL

NET PROFIT AFTER TAX

Operations and financial performance tables 3

Map 4

Year at a glance 5

Delivering on guidance 6

Chairman's statement 8

CEO statement 10

PRODUCTION

PEOPLE

OF SALEABLE COAL (EQUITY BASIS)

Whitehaven Coal produces approximately 20 million tonnes of saleable (100% basis) thermal and metallurgical coal per annum for export into the premium international markets. Whitehaven Coal is a leading producer of some of the world's highest quality coal. Operating in NSW's Gunnedah Basin, our vision is to be Australia's leading

FULL TIME EMPLOYEES WITH 80%

LIVING IN AREA OF OPERATIONS

SAFETY PERFORMANCE

TOTAL RECORDABLE INJURY FREQUENCY RATE

OPERATIONAL PERFORMANCE

OF COMMERCIAL COAL PRODUCTION FROM MAULES CREEK

independent coal company.

Operating four open cut mines (Maules Creek, Werris Creek, Tarrawonga and Rocglen), one underground mine (Narrabri) and a Coal Handling and Preparation Plant, we have offices in Gunnedah, Newcastle, Sydney and Tokyo, Japan.

Whitehaven Coal has been growing our workforce and currently employs over 800 people, sourcing the majority from the local communities in which we operate. We are focusing on increasing the diversity of the workforce and are hiring more women and Aboriginal employees.

Listed on the Australian Securities Exchange with the code WHC, Whitehaven had 1026m shares on issue as at 30 June 2016. More information on Corporate Governance is elsewhere in this report and available at www.whitehavencoal.com.au.

AWARDS

NAMED NSW MINING OPERATION OF THE YEAR

Maules Creek Mine

2 / SECTION 1 OVERVIEW