While the Illawarra producer reported a 60% lower net profit for the year to March 31 of $9.7 million, it expects to begin lifting its latest annual production from 1Mt of ROM coal with the installation of the Joy longwall at NRE No 1 in April.

“GNCCL is progressing well in its expansion plans and the company is confident in achieving the same,” it said.

“Thus the company is rightly poised to reap the benefits of growing demand of coking coal.

“GNCCL has a ready market for its increased coking coal production not only from India and its parent company, but also from other high growth economies like China. The prime hard coking coal produced by the company is of one of the best in quality mined in Australia and is ideal in steel making.”

The company expects to produce 3Mtpa of coking coal from NRE No1 mine and 2Mtpa of coking coal from NRE Wongawilli by 2016.

Having both its mines now under longwall production would not only increase the total production of coking coal from both the mines but would also considerably reduce the per tonne cost of production, the company said.

In order to keep the development of longwall operations at NRE No.1 colliery on track and to achieve the long term goal of producing more than 5Mtpa from both the collieries, it became necessary to relocate certain sections of the workforce from production activity to developmental work, thereby impacting the production.

The company also faced operational challenges mainly in encountering adverse geological conditions on a few occasions especially in the second half of the financial year.

The total revenue and other income of the group was $186.91 million for the reporting period compared to $246.97 million for the financial year ended March 31, 2011.

During the financial year, the company also received the approval from NSW Planning Assessment Commission to its proposed $122 million upgrade of the existing infrastructure at NRE No.1 colliery.

The approval gives the company the right to continue extraction of up to 1Mt of coal from the Bulli and the Wongawilli seams for the next three years; the permit to transport the coal by truck to the Port Kembla coal terminal; and to upgrade its existing surface facilities and infrastructure at NRE No.1 colliery.