New Hope said its Australian coal mines were at full capacity over the 2005-06 financial year, with coal sales of 3.774 million tonnes, some 325,000t above the previous year.

The bulk of coal production came from the New Acland Mine, which produced 2.64Mt over the year.

Basic earnings per share were 8.6c, compared to last year’s Australian operations component of 7.2c per share.

The company said cost pressures were still squeezing New Hope’s pricing margins, which appeared to be a common experience shared across the mining industry, but said thermal coal prices have recovered from a downturn at the end of last calendar year and have remained steady.

“High fuel and explosives cost pressures continue, tyre supply remains difficult and infrastructure providers are increasing charges,” the company said.

“New Hope is evaluating its operational procedures and processes to determine cost-efficiency improvements in an attempt to offset these higher operating costs.”

Looking forward, the company said two of its Ipswich mines were nearing the end of their economic lives, with New Oakleigh to continue production until 2009 while Jeebropilly will close in January 2007.

A loss of 500,000t in annual capacity is expected to result from the closure, due to the costs associated with moving mining infrastructure from the exhausted Jeebropilly reserve to New Acland.

“The New Acland Stage 2 mine expansion is underway and on schedule for completion by April 1, 2007.

“Specifically, an additional wash plant module is under construction, new mining equipment has been ordered for delivery over the next four to five months and additional site infrastructure construction has commenced,” the company said.

The New Acland Mine Stage 2 expansion will increase the total mine capacity to 4Mtpa.

New Hope, majority owned by investment house Washington H Soul Pattinson and Co, has mining, coal handling and exploration operations in Queensland.

New Hope shares were trading up 5.26%, closing yesterday at $1.35.