During the quarter, the company sold 138,000 tons of metallurgical coal and 37,000 tons of thermal coal at a price of $US152 and $32 per ton, respectively.

Corsa attributed is on-target output to improved performance from Casselman, which ramped up production from 11,000 raw tons in June to 42,000 raw tons in August using two continuous mining units working two shifts with a third maintenance shift.

It represents an underground productivity rate in excess of 4.5 tons per man hour and the result has been a significant improvement in mining costs per ton.

Corsa says when combined with improved recoveries in the plant and the improved raw coal and refuse handling, it is managing to improve its competitiveness, even in the current tight coal market.

Casselman produces a high-quality low-volatile product which Corsa management has described as very well suited for domestic steel producers and coking operations as well as the seaborne market.

Corsa has predicted a weaker market for the fourth quarter and has outlined a strategy of matching production with reduced demand to avoid unnecessary inventories of unsold coal.

Based on purchase orders and scheduled trains, Corsa expects to ship approximately 32,000 clean tons of metallurgical coal in September.

The company also said it was in discussions with both domestic buyers and buyers for the seaborne market.