Speaking at Centennial’s AGM last week, chairman, Ken Moss said the 4.5 million tonnes per annum operation has secured contracts for 3Mtpa for up to 16 years. Longwall production is planned to commence in 2005.
The financial result for the twelve months to 30 June 2002 was the first full year since Centennial’s acquisition of a 50% interest in Springvale in December 2000 and represents a near trebling in net profit after tax to $29 million, Moss said.
“Latent capacity at the pre-existing Centennial mines, expected productivity improvements from the newly acquired Powercoal mines and the development of two major development projects will ensure that Centennial Coal remains Australia's leading "pure coal" listed company well into the future,” Moss said.
Moss added that Powercoal was Centennial Coal's largest acquisition to date. The integration of staff and operations is progressing very well with each mine incorporated into the Centennial "profit centre" structure, he said. This has increased the autonomy of each mine.
“The company’s first Quarterly Activities Report for the 2003 financial year indicated that we are meeting our operational and financial expectations, with the newly acquired Newstan mine (now the Groups largest mine) setting a record monthly production level 10% above its previous best. Management accounts for the four months to 31 October 2002 confirm that we are on track,” Moss added.
