The Bowen and Surat Basin focused company announced total sales of metallurgical and thermal coal for the quarter reached 247,500 tonnes from its 50% owned opencut operation, Isaac Plains.

During the September quarter the mine shipped its first Capesize thermal coal cargo and infrastructure design plans for the Isaac Plains South development were commenced.

A BE 1370 dragline will also soon arrive at the mine after being relocated from Texas.

Meanwhile, Aquila's introduction to the underground coal sector is progressing as planned with progress made on its Belvedere Coal Underground Project and the Peak Downs East Underground Project.

The company plans to settle a transaction with CVRD for a 51% interest in the Belvedere project before commencing exploration and mine development studies while Peak Downs has entered Stage 3 exploration and will complete a pre-feasibility study by June 2008.

Looking overseas, Aquila secured the sale of Mocambique coal exploration tenements for $A26 million cash and 10 million fully paid ordinary shares in Riversdale Mining during the quarter.

It also signed a joint venture agreement with Jonah Capital and Scharrig Mining to accelerate exploration programs and evaluate potential mine development options at its Botswana Coal project.