FIREWORKS are expected at Whitehaven Coal's annual general meeting on Thursday in Sydney after majority shareholder Nathan Tinkler said he would vote against all resolutions.
Mr Tinkler, who holds about 21 per cent of Whitehaven shares, said he was frustrated and disappointed with Whitehaven's performance following a recent share price slump.
He will vote against the company's pay report as well as the re-election of Whitehaven chairman Mark Vaile and directors Paul Flynn, Philip Christensen, Richard Gazzard and Christine McLoughlin.
"The Tinkler Group acknowledges that all resolutions may still be carried but believes the board needs to be sent a clear message that transparency to shareholders and management accountability are of primary importance," Mr Tinkler said in an open letter published on Wednesday.
A 25 per cent shareholder vote against the pay report would constitute a strike against the company, which could lead to a spill of the entire board next year if a second strike occurred.
Mr Tinkler acknowledges large falls in the price of coal and economic uncertainty have contributed to a 44 per cent decline in the NSW coal miner's share price since April 30.
But he says the Whitehaven board and management team have failed to adequately address this issue.
Continuing operational issues at its Narrabri mine in north western NSW had affected the company's ability to control costs and achieve production targets, he said.
The entrepreneur also cited a one-year delay in the expected commencement of Maules Creek production and an inability to control costs at existing mines as evidence of underperformance.
Mr Tinkler last week made threats to vote against the election of Mr Vaile and four other directors if a detailed financial and operational update was not provided by last week.
The company refused, releasing its quarterly report for the three months to the end of September to all shareholders on Friday as planned.
Morningstar resources analyst Gareth James said the general view in the market was that Mr Tinkler was frustrated that he could not increase his shareholding in Whitehaven at the current low share price due to a possible agreement to delay increasing his stake.
"That's what's driving a lot of this, such as the letter that he sent to Whitehaven management last week and the letter that was put in the paper today," Mr James said.
"Our general view is that we're more positive than Nathan Tinkler has indicated in that letter.
"We're positive on Whitehaven than that and I'm not expecting a big change at Whitehaven tomorrow."
The price of Newcastle standard thermal coal dropped from $US90 ($A87.52) a tonne to below $US80 ($A77.79) during the September quarter.
Whitehaven shares on Wednesday closed up five cents at $3.05. This compares with $6.69 in April 2011.
Whitehaven managing director Tony Haggarty issued a statement saying comments made by the Tinkler Group contained serious inaccuracies, inconsistencies and misleading statements.
"The Whitehaven board welcomes the opportunity to address any questions from shareholders on the matters raised today, or any other matters, at tomorrow's annual general meeting," Mr Haggarty said in a statement on Wednesday.
"The Whitehaven board and management team is focused on one thing - building value for all shareholders in a credible, professional and sustainable manner."
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