The company foreshadowed its operating profit for the half will be lower than the $52 million result for December 1999. The main contributor was a half year loss of $25-30 million EBIT sustained by its European operations.

 

MIM reported generally good mining performances across its operations with some reductions in refined metal production. The coal operations continued to produce high volumes.

 

At MIM’s 75% owned Oaky Creek complex strong production performances continued with product coal output ahead of that for the previous December quarter. MIM’s 75% share of production:

 

No 1 mine - 590,265t (800,120t December 1999 quarter)

Oaky North - 709,184t (82,415t)

Alliance – 57,706t (290,936)

 

Longwall moves were successfully completed at Oaky North and the No 1 underground mine with no significant impact on product coal output. Washplant operation was maintained utilising run-of-mine stocks.

 

At the 75% MIM owned Newlands-Collinsville-Abbot Point complex, product coal output declined from the peak achieved in the September quarter. MIM’s 75% share of production:

 

Newlands – 574,157t (1.099Mt)

 

Poor geological conditions and a harder coalface in the underground mine limited coal output at the Newlands longwall mine but mining conditions are expected to improve in the next panel. A longwall move is planned early in the March quarter. Open cut production is being increased to replace coal stocks.