Bounty received a notice of default from Anglo not long before Christmas, but this was withdrawn in April.

It has now resolved issues with Anglo over its contract to provide bord and pillar mining services to the Aquila and Bundoora mines.

From July to November 2010 it mobilised its workforce to re-establish the Aquila mine for Anglo, a process which included relocating from the Chain Valley operation in New South Wales.

Coal production began at Aquila in December 2010 after upgrading infrastructure and roadways.

The Aquila project required one fleet of Bounty equipment, including its continuous haulage gear, while the Bundoora contract mainly uses Anglo’s equipment.

Bounty continues to improve production at the Aquila project, the company said.

The company is now operating at full shuttle car production at Aquila.

Based on continuing satisfactory performance at the Aquila project, the Bundoora bord and pillar remnant mining project is expected to begin next quarter.

Bounty continues to commit funds to upgrade the second fleet in preparation for new contract opportunities in NSW or Queensland, chairman Gary Cochrane said.

Bounty’s profit before tax for the half year to June 2011 is expected to be $0.09 million, compared with a loss of $1.91 million for the half year to June 2010.

The guidance for FY11 includes unaudited results to May 11, and a forecast for June 11 based on achieving forecast production targets.

The guidance does not include any provision for impairment of equipment values.