The development timetable targets increasing group production from about 4.5 million tonnes per annum in 2006 to 8Mtpa by 2010, a planned increase now possible as port, rail and other infrastructure expansions kick in.

A shallow underground operation will be one of the mines to be developed – MCC’s first venture underground. It will initially be modest in scale with scope to ramp up after working conditions have been assessed.

Company chief Ken Talbot said MCC would maintain sales levels of PCI coal while growing sales of coking coal to almost 2Mtpa, adding that coking coal had been confirmed in three of the company’s new projects.

First cab off the rank will be the opencut Olive Downs project, 15km south of MCC’s Moorvale mine in central Queensland.

Olive Downs will produce 1Mtpa ROM consisting of both coking and low volatile PCI coal. MCC said the mine’s proximity to Moorvale’s infrastructure was a major advantage, enabling development at low capital cost.

“Macarthur Coal is in a strong position today because we have substantial organic growth opportunities and a track record of advancing these opportunities to their full potential. Our plan is to develop the new projects on a staged basis,” Talbot said.

The company said it was considering bringing in different joint venture partners for the new operations to secure sales commitments.

Talbot said the company’s long-term outlook meant it had continued exploration activities resulting in a project pipeline comprising nine potential projects acquired at relatively low capital expenditure.