The group will concentrate on expanding the West Cliff and Appin mines in the No. 1 Seam deposit to achieve maximum synergies and contain costs. Output from the two collieries will increase to around 3 million tonnes per annum once the Tower operations cease production in December 2002.

West Cliff has been building manning since September last year, and production has already been expanded from 1.9 million tonnes to 2.3 million tonnes this financial year. The coal preparation plant has been upgraded from 740tph to 850tph, and an upgraded ventilation system installed.

Bruce Allen, vice president operations, said a rebuilt 12CM12 machine, ex Kenmare, arrived on site in September 2001, and four new SMV Drift Runners have been commissioned to serve the additional travel distances to the mine’s 500 area.

Mine manager Gavin Taylor said his team was already assessing future equipment requirements, including a potential replacement longwall system.

As part of the company’s strategy to move operations into the lower cost quartile, Appin colliery carried out a major upgrade on their main slope belt in September 2001. The existing head pulley, motor and gear box were removed and the structure components taken back to a concrete base, where the new structure new motor and gear box were fitted.

The principal contractor on site was Gulf Conveyors who took charge of the organisation and operations and PHD Engineering which was responsible for the off site refurbishment of the main slope gearbox.

The single drive head pulley is one of the largest in the world for the transmission of 3mw power, enabling the 2 kilometres of belt fully loaded to be pulled up a grade of 1 in 3.5, with a vertical lift of 520metres.

Improved gas drainage arrangements are also being installed to remove limits on projected expansion of production.