Excel said it was working with the plant’s contractor to overcome the delay but if it could not be recovered, and delayed coal sales could not be regained within the fourth quarter of fiscal 2006, there would be a negative impact on Excel’s full-year net profit after tax –of about $A10 million for each month coal sales were delayed.

Excel said the New South Wales plant would have substantial surplus capacity when commissioned, but rail and port constraints would mean the potential to recover any delayed coal sales within financial year 2006 was uncertain.

Roche commenced mining at Millennium in late October and a significant amount of coal will be available when the plant is commissioned.

In other annual general meeting news, Excel said MacGen had confirmed that it would take 7 million tones per annum of coal from the Wilpinjong project from 2012 to 2025.

The existing domestic sales contract covered 3 million tonnes in 2007, 4Mt in 2008, 5Mtpa from 2009-2011 and 3-7Mtpa until 2025. MacGen opted for the high end of the ratio.

“As well as maximising the utilisation of Wilpinjong’s installed capacity, this confirmation will allow excel to develop Wilpinjong’s export sales with certainty,” the company said.

Excel and MacGen have also agreed to a new contract for the supply from Wilpinjong of an additional 1.5Mt at the rate of 500,000tpa from 2007-2009. Discussions on additional tonnage for 2010-2011 continue.

Another new contract will see Excel’s Chain Valley supply Delta Electricity’s Vales Point Power Station with 600,000t over three years, commencing this month.

“It [the contract] will allow full exploitation of the Fassifern reserves which are currently being developed at Chain Valley and will allow full utilisation of Chain Valley’s production capacity,” Excel said.