Presenting at the UBS coal seminar, Hollows said traditional customers had resumed normal buying patterns since the September quarter of the 2010 financial year with sales near record levels.

 

She said steel prices had steadied in recent weeks and were supportive of current metallurgical prices, adding that spot prices for metallurgical coal were above benchmark contract prices.

 

Macarthur was confident in its project pipeline and was progressing several developments, with the Middlemount mine one of the first off the ranks.

 

Middlemount will have an initial production of 1.8 million tonnes per annum of run-of-mine coal with first coal expected in 2011.

 

Construction at the site is progressing with the coal handling and preparation plant expected to be commissioned in the September quarter of 2010.

 

A feasibility study at the Codrilla project has begun and is looking into an open cut mine producing 4Mtpa.

 

Vermont East is being extensively exploredwith a prefeasibility study to start next year based on a 4Mtpa ROM operation.

 

Macarthur is also evaluating the potential of underground resources at West Walker, West Burton and Moorvale.

 

Macarthur was trading up 2.73% mid-morning today at $A9.40.