Annual production rose to 1.95 million tonnes, up from 1.5Mt.

The record production rate resulted in a build-up of clean coal stocks to 193,000t at the end of the quarter, and clean coal sales of 495,000t for the three-month period were nearly 20% higher than the comparable period.

A change in mining conditions between longwall panels 19 and 20 enabled recovery of coking coal to increase to an all-time high of 82.6%, in contrast to 64% in panel 19.

Austral said it expected mine development to increase significantly with the introduction of development contractors next month.

Roche Mining has been awarded a $30 million, 18-month development contract, which will augment Austral's two development units and ensure all required Tahmoor North development is completed on schedule.

Other highlights for the quarter include a $7.4 million coal preparation plant upgrade contract awarded to Roberts and Schaeffer.

Austral is currently involved in contract negotiations with Japanese companies, and said prices for coking coals in 2003 would increasingly be determined by individual coal qualities.

Austral shares remained steady at 61c.