“Centennial traditionally enjoys a stronger second-half result and this will again be the case for the 2010 financial year … as Airly and Mandalong enter the export market with Mandalong contributing an estimated one million tonnes in the final quarter,” Centennial chairman Ken Moss said Friday at the company’s annual general meeting.

The Mandalong haul road is 80% complete, with the expansion to allow the New South Wales mine to begin exporting up to 1Mt in the second half of this financial year.

The 1.8Mtpa Airly mine construction works are also well advanced with the rail loop and surface coal handling system almost completed.

First export coal is expected early in the June 2010 quarter.

In the 2010 financial year Centennial expects to deliver a 25% increase in export volumes to 5Mtpa.

Production is set to coincide with a lift in coal prices, with Moss stating Centennial had experienced increased enquiries for its coal.

“The recent up movement of spot prices should translate into new higher contract prices that will benefit second-half earnings,” he said.

“While export spot and contract thermal coal prices have fallen from their record highs in 2008, they remain at the second highest on record.”

The export thermal spot price is currently on the rise, sitting above $US80 per tonne.

Centennial is also progressing work at its Newstan Lochiel project with 33 bore holes now complete and a prefeasibility study underway.

The study is expected to be completed around the end of the June 2010 quarter

Moss said given that 25% of the mine’s 3.2Mtpa would be high-quality, semi-soft coal, options were being actively pursued to expedite the project.

The chairman also addressed the government’s Carbon Pollution Reduction Scheme, stating the company would not be materially impacted given the assistance to gassy mines.

He said Centennial’s Northern operations released fugitive methane emissions so would benefit from the assistance.

“We are actively investigating mitigation programs that will assist with abatement,” he said.

The company’s western operations were low emitters so would remain largely unaffected.

“We believe we can pass through any emissions trading scheme cost to our domestic power station customers under our existing long-term contracts.”