Centennial conducted a strategic review early this year to evaluate whether to sell off its smaller mines.

Prospective buyers have now commenced minesite visits as part of their due diligence and final bids are expected during the September 2006 quarter, with a decision regarding the future of the assets due shortly after.

Centennial also announced its Newstan longwall operation in New South Wales has restarted production in the new LW23 block, after relocation of the longwall began in April.

Newstan management said the face conditions are excellent and the longwall ramp-up continues, with finetuning of the various new and upgraded components of the longwall expected to be completed this week.

As part of the upgrade, a new armoured face conveyor (AFC) and beam stage loader (BSL) have been installed and the shearer upgraded. The new AFC is almost three times more powerful than its predecessor, which was damaged as it worked through extreme faulting in the middle of LW22.

In its March quarterly report, Centennial said Newstan had continued to experience significant but intermittent difficulties with equipment reliability issues arising from damage caused to the old equipment. As a result of these difficulties, in particular the way the AFC affected the ability of the longwall to mine through the remainder of LW22, Centennial decided to relocate the longwall.

Centennial said the overhaul has allowed Newstan to recommence production and return to profitability.