Welcomed by the Chinese dragon and lion dancers, guests also witnessed the initiation of new longwall top coal caving (LTCC) mining technology via videolink from the Greta Seam 430m underground, and 8km from the surface.

The opening represents a major milestone for the former Southland mine, which was devastated by a mine fire in 2003, but later bought and resurrected by Chinese major Yanzhou Coal Mining Company, whose partnership has underpinned the development of LTCC methods at the mine.

Austar senior site executive Greig Duncan said the mine will generate a turnover of approximately $200 million per annum, over a 20-year period, producing 2 million tonnes in the first year of longwall production, and 3Mtpa thereafter.

The much anticipated ramp-up of the LTCC system is scheduled to commence operation in late October 2006.

The mine was officially opened by Minister for Mineral Resources Ian Macdonald, together with Chairman of the Supervision Board State-Owned Assets, Supervision and Administration Commission of Shandong Province, Ma Lin.

Other guests included the Mayor of Cessnock, Cr John Clarence and the Deputy Consul-General of the People’s Republic of China, Li Yanduan.

Over 350 people, including employees, were onsite for the opening.

In preparation for the longwall ramp-up, Duncan said building a safe and efficient longwall workforce has been a priority at Austar, which currently employs 227 full-time employees and 59 full-time contractors.

In full operation the mine will have 270 full-time employees.

Duncan said the mine has developed the first approved training program for new starters to the industry and is committed to a 12-month intensive training program for all employees before they begin work as fully qualified coal miners.

Austar is the first mine in Australia to introduce the LTCC technology, which increases the amount of coal extracted from each panel, improving efficiency.