The loss came on the back of revenues of $A82.5 million and included a one-off bank charge of $A18 million.

Eight months ago Austral’s Tahmoor mine, which has been under Centennial’s control since April 7, suffered from poor equipment availability. Production was severely restricted, affecting cash flow and employee morale as mining conditions deteriorated, Centennial said.

By the end of the March 2005 quarter, much of the equipment issues had been addressed, but gas levels emerged as a problem.

Centennial has since made short-term changes to the ventilation system and plans to install a larger capacity fan for a long-term fix.

Tahmoor is currently undergoing the first of three longwall changeovers required over the next three months before moving to longer blocks in the future.