Millennium

Construction of the Millennium coal preparation plant was completed in September and full commissioning of the plant is now in progress. Washed coal sales from Millennium are scheduled for late October.

Performance testing of the Millennium coal preparation and handling facilities, for the purpose of finalising the Red Mountain Joint Venture (RMJV) with BHP Mitsui Coal (BMC), is expected to commence around October 13 this year.

“The RMJV will involve Millennium transferring a 50 percent interest in its access road, power, coal preparation, coal handling and rights to rail transport infrastructure to BMC upon successful completion of the performance tests,” the company said.

In consideration for acquiring a 50% interest in the RMJV, BMC will transfer some of its coal tenements to Millennium, including Mavis Downs, Wotonga and Moranbah.

The company said Millennium will also obtain a mining lease over an area belonging to BMC, known as North Poitrel, which adjoins Millennium’s existing tenements and will be developed by Millennium as part of its integrated, long-term mine plan.

Wilpinjong

Construction of the Wilpinjong mine is progressing on schedule, with the rail loop now complete and the first trainload of raw crushed coal scheduled to be dispatched to Macquarie Generation in mid-October.

Initial trains will be loaded by front-end loaders, pending the scheduled commissioning of the raw coal handling facilities in December.

This will be followed by commissioning of the coal preparation plant in February 2007.

North Wambo Underground

Development of the North Wambo underground mine is progressing toward longwall production in late April 2007, with some delays in underground development due to delayed delivery of continuous mining equipment.

“However, mining conditions underground are favourable and satisfactory mining rates are being achieved,” the company said.

“Longwall equipment is now being delivered to site and will be tested on the surface in preparation for being taken underground.”