Revenue was up 43% to $937.3 million compared to the same period last year, an increase managing director Hubie van Dalsen attributed to the current thermal and semi-soft coking coal prices.

"Coal and Allied has increased its production of semi-soft coking coal to take advantage of these stronger prices. At 30 June, approximately 1.37 million tonnes of semi-soft coal sales had been provisionally priced within a range of $US200 to 220 per tonne," van Dalsen said.

He said infrastructure constraints continued to impact the company, but a reduction in shipping queues at Newcastle Port during the quarter had lowered demurrage rates.

Total production for the first half of 2008 was up 10.4% at 12.7 million tonnes.

"In the year to date our production has exceeded sales as we have been rebuilding inventories following the weather-related impacts in 2007," van Dalsen said.

He said Coal and Allied awaited the review by former New South Wales premier Nick Greiner on the coal chain in the state.

Coal & Allied had made a submission for the introduction of a long-term commercial framework to improve coal chain performance, Van Dalsen said.