The company’s share of semi-soft production was also 31% lower than the same quarter last year, due to coal seam presentation and mining sequence issues. Semi-soft production is about 17% of Coal & Allied’s attributable saleable production.

“Whilst Mount Thorley Warkworth’s saleable coal production was two per cent lower than the previous quarter, it was in line with the corresponding quarter in 2010,” the company said.

“Production was lower this quarter primarily due to coal releases being impacted by significant weather events in June, which resulted in over 20 per cent of available time being lost.

“Bengalla’s saleable production was 10 per cent lower than the previous quarter and nine per cent lower than the corresponding quarter last year. Bengalla’s lower production was a result of coal seam sequencing and the significant weather events experienced during June.”

Hunter Valley Operations’ saleable coal production was 28% higher than the previous quarter and 26% higher than the corresponding quarter in 2010.

The mine produced the highest quarterly coal output for five years, recovering strongly from the low levels of blasted inventory early in the year that hampered first quarter production.

But significant weather impacts in June hampered a strong load and haul performance and a monthly record for overburden removal during the quarter at Hunter Valley Operations.

Coal & Allied said it remained on target to achieve a full year saleable production increase of 5-10% in 2011.

Coal & Allied’s share of coal sales for the second quarter was 5.1Mt, which is 7% higher than the March 2011 quarter and 13% higher than the corresponding quarter in 2010.

The impacts of the Japanese earthquake and tsunami were felt during the quarter as the timing of some shipments priced in the 2010 Japanese fiscal year were pushed into the new year commencing April 1.

“Coal & Allied’s sales portfolio covers a broad mix of pricing periods, and as such there is a lag effect as more recent price settlements gradually flow into realised prices,” the company said.

“The combination of these factors means that, setting aside legacy contracts previously outlined, more than half of second quarter sales remain priced at 2010 pricing levels.”