(Reuters) - Australia's Whitehaven Coal <WHC.AX> said on Tuesday its total coal sales rose 10 percent in the March quarter thanks to increased demand for thermal coal by steel producers and as northern Asia experienced cooler weather than usual.
Total coal sales for the quarter came in at 5.4 million tonnes, up from 4.9 million tonnes produced a year ago, the miner said in its quarterly report.
Whitehaven said it sold thermal coal at an average price of $103 per tonne in the quarter, representing a 10.2 percent premium over the average thermal coal price <GCLNWCPFBMc1> of $93.50 per tonne during the March quarter.
Whitehaven, which produces both thermal and metallurgical coal from three mines in New South Wales state, said thermal coal prices are likely to remain buoyant if producers continue to prefer to "buy" rather than "build" new production capacity.
Whitehaven added that metallurgical coal prices are expected to remain well supported in the next year if the announced frieght sale by Aurizon Holdings <AZJ.AX> comesthrough.
However, run-of-mine coal production for the March quarter at the Narrabri mine, owned 70 percent by Whitehaven, was 11 percent lower due to mechanical issues.
Earlier this year, the company cut its full-year guidance for saleable coal output after a decline in production from its Narrabri mine in the December quarter due to work to fix unstable roof conditions.
Saleable coal production for the quarter came in at 5.2 million tonnes, from 5.1 million tonnes produced a year ago.
(Reporting by Chandini Monnappa in Bengaluru; Editing by Eric Meijer and Michael Perry)
