The Aquila project at Anglo Coal’s German Creek operation in Central Queensland began operating in November 2005 and has since been restrained by high mining costs and expensive equipment maintenance.

Aquila experienced tough mining conditions during the first three quarters of

the 2006 calendar year, but has reported improved production trends from November through to January.

Bounty executive chairman Colin Knox said the results were “disappointing” and that the company had taken steps to counteract the main issues.

The Aquila project has extended operations to a new area within the mine with better mining conditions, and Bounty has also negotiated an improved rate with Anglo to meet rising costs.

Knox said the company was also focused on bringing in a Stamler continuous haulage system as soon as possible, which will improve productivity.

“Bounty is a young company working to build a long-term order book in the thin seam and gate road development contracting sector,” he said.

“The board has identified a number of prospective projects which should commence over the next year which will help to increase Bounty’s revenue, and most important, profitability.”

The most immediate project is the Tatu project in New Zealand with an anticipated start date in the second quarter of fiscal 2008.