The Australian company announced last week it had successfully completed sales contracts for its full production in the 2003-04 year, including new clients and rollover of contracts of existing customers.

Austral managing director Ugo Cario said the company’s buoyant sales activity came at the same time the company was reviewing a new Life of Mine plan which would take capacity to four million tonnes per year.

“The development outlook for Tahmoor North is very encouraging,” Cario said.

“International Mining Consultants have produced a detailed revised mine plan for up to 4mtpa of ROM coal.

“In addition, mining conditions in Tahmoor North are proving better than expected. This has allowed the intensity of roof support to be reduced which will assist in increasing development rates.”

Tahmoor Colliery is located in New South Wales' southern coalfields, some 70 kilometres south-west of Sydney and mines the Bulli seam.

Cario said future development rates and lower development costs had also received a boost through an unexpected reduction in the quantum of grunching (drill and blast) required at Tahmoor.

The department of Mineral Resources had approved an increase in the allowable limits on the gas content of coal that can be mined by conventional mining methodology rather than expensive and slower grunching technique.

“This is a significant issue for Tahmoor and is based on the findings of two years analysis and is conditional on the continuation of Tahmoor’s comprehensive in-seam gas drainage program,” he said.

Cario said the major task during the June quarter had been the $7.5 million upgrade of the coal preparation plant scheduled to begin later this month.

The manufacture of the company’s new longwall system by DBT in Germany is progressing to schedule and the associated new longwall shearer, being manufactured by Joy mining Machinery is near completion. The shearer is expected to arrive in Australia for display at the Aimex mining show in Sydney in September.