High dollar to hurt Whitehaven profit Loss making miner Whitehaven Coal has warned of continued tough trading conditions as low export prices and the strong currency force it to continue squeezing costs. Output from its managed mines is estimated to rise 25 per cent this financial year to an estimated 10.7 million tonnes. Despite the slight improvement in coal prices in recent months "we must be realistic about the subdued coal price outlook, and the probability of continuing strong [Australian dollar]," the chairman, Mark Vaile, told shareholders at today's annual general meeting. Whitehaven's focus will remain on cost reduction, improving efficiency and optimizing each of our operations. As the world moves towards cleaner sources of thermal coal it will increasingly benefit both Whitehaven and Australia. After slicing $5 off its cost of producing each tonne of coal in fiscal 2013, Whitehaven forecast a further $2 a tonne reduction this financial year. And with the Australian dollar holding above 94 US cents, "we are very focused on costs," the chief executive, Mr Paul Flynn told shareholders. By fiscal 2017, by which time the delayed Maules Creek project will be in full production, the average cost of producing a tonne of coal across the group will stand at $65 a tonne, he said First shipments from Maules Creek are expected in fiscal 2015, and when it is fully operational, group output will rise to 23 million tonnes of coal annually, from the present level of 4 million tonnes. "We are already very competitive ... but it will drive it down even further," he said of the impact of the Maules Creek mine in reducing costs. Even with the company's optimism, investor sentiment towards the shares remained subdued, with investors marking them down another 3 per cent to $1.56 in mid-morning trading.