But longwall moves at its Oaky Creek underground complex in Queensland led to 300,000t lower coking coal production for the three months to March 2012.

While the first quarter of 2012 did not have the flooding impacts encountered in 2011, it had several significant mine closures.

“The full impact of improved volumes from the Australian operations was not wholly realised due to the end of mine life closures in 2011 at the Beltana, Ravensworth West and Baal Bone operations, which were still producing in the first three months of 2011,” Xstrata said.

Australian thermal coal production was 10.9 million tonnes for the quarter compared with the 9.4Mt for the previous corresponding quarter, while coking production was 1.4Mt compared with 1.7Mt for the previous corresponding quarter.

In March, Xstrata Coal received two decisions that provided greater certainty for its Australian operations.

The Queensland Land Court recommended the Queensland government approve Xstrata Coal’s mining lease applications for the 22 million tonne per annum Wandoan coal project.

Also, the NSW Land and Environment Court declined to impose any greenhouse gas offset conditions on the project approval for Ulan coal mine’s continued operations project.

Globally, Xstrata Coal produced 21.1Mt in the March quarter compared with 19.3Mt for the previous corresponding quarter.