The coal will be stockpiled at the Port of Gladstone until the first shipment overseas, which is currently being planned with Xstrata Coal, the exclusive agent to market and sell Caledon’s Cook coal until December 2008.

 

Production at Cook commenced early March 2007 at a rate of 50,000t of coal per month, which will rise to 100,000t by the end of 2007.

 

An annualised coal production rate of 1.5 million tonnes per annum is planned in 2008.

 

“With the achievement of our first train load of coking coal from Cook, an event which is to become a regular occurrence for us, Caledon has achieved yet another important milestone in its transition from explorer to producer with cash flow,” CEO George Salamis said.

 

The production ramp-up is continuing at Cook with new mining equipment being introduced on an ongoing basis.

 

A continuous haulage system patented by Magatar Mining and produced by Canadian company Prairie Machine and Parts is currently being shipped to the mine, in time to start work in June-July.

 

Caledon's 100%-owned Cook mine is host to approximately 126.5Mt of resource and in excess of 17Mt of mineable reserve.

 

The company continues to drill both existing and new areas of the Cook mine lease with the objective of collecting coal quality and coal seam thickness information.