In April, the company forecast a gap of approximately two months between the completion of Longwall 1 and the commencement of Longwall 2.

The company said while the further delay would impact on development performance, the improved production from subsequent longwall blocks would largely offset the production shortfall.

Meanwhile, the company’s recent capital raising will go towards new duplicate longwall equipment (excluding supports) which will reduce the down time associated with changeovers in the future.

Like most Hunter Valley mines, Resource Pacific did not escape the effects of flooding and storms that swept across the region in early June, and will have to contend with further shipping delays at Newcastle which could last another four months.

The company said current delays at Newcastle Port were three to four weeks, with demurrage costs forecast at $US3.50 per tonne.

“The market remains firm for Newpac brand coal. The success of longwall mining has eliminated delivery risk, and customer enquiries for coal availability have increased,” managing director Paul Jury said.

“Confidence is high that increased saleable production arising from settling in of longwall operations will be sold.”

Full-year financial results will be released in mid-August.