In his presentation to the NSW Mineral Exploration & Investment Conference on Friday, Felix managing director Brian Flannery unveiled the schedule for Moolarben’s development.

For 2010, Moolarben is forecast to produce 6 million tonnes of thermal coal with 4.5Mt destined for export and 1.5Mt for the domestic market.

In 2011, production is expected to lift to 8.8Mt with 6.8Mt for export and 2Mt for domestic needs.

Felix aims to ramp up to 12.8Mt of production in 2012 with 10.8Mt for export markets.

All major construction is underway with mining infrastructure to be completed in October along with the Wollar road diversion.

The coal preparation and coal handling plants are both scheduled to be finished in March, while the rail loop is targeted for completion in February.

Water supply for the mine through the Ulan pipeline is set for September 2010, while the completion of the Newcastle Coal Infrastructure Group terminal in March will allow the first exports from the mine’s open cut operations.

The first set of four Komatsu 830E haul trucks are to be commissioned in September, with another four due in November and four more ready in February.

An excavator and the initial fleet of dozers and graders are also due to be commissioned in September for the start-up of mining.

Another two excavators will arrive later, one in December and the other in January.

The thermal coal project holds open cut reserves of 277.7Mt and 406.6Mt of resources, and underground coal reserves of 79.1Mt and 299.8Mt of resources.

Felix currently has government approval for 10Mt per annum of product coal with up to 4Mtpa permitted from its upcoming longwall operation, while Moolarben will produce most of its coal from three open cuts.

The company’s board welcomed a takeover offer from Yanzhou Coal Mining late last week, saying the major Chinese coal producer has the funds to continue development of Moolarben.

Yanzhou, which owns the Austar mine in the Hunter Valley, had $A1.8 billion of cash resources at the end of June.

Yanzhou has offered $16.95 for Felix and, as part of the deal, Felix is offering shareholders $1 per share in total fully franked dividends and shares in a future spin-off ASX listing of its South Australian Coal Corporation subsidiary, at 5c each.

Felix expects the takeover to be completed by late December. Shares in the company are up 11c this morning to $17.71.