The company reported a net profit of $A13.1 million for the year ended June 30, on record sales of roughly two million tonnes, 26% better than last year.

Higher prices were achieved for low volatile PCI and thermal coal from the company’s Yarrabee opencut mine, which produced 25% more coal than last year.

The company anticipates growth to continue into 2006 given ongoing strength in the coal market. 2006 will mark the first full year Felix has owned the New South Wales Ashton mine, acquired through the purchase of White Mining.

The White acquisition has doubled Felix’s production capacity and will provide a launch pad for the company’s plans to increase sales to 13Mt by 2010. In August, Felix reduced its interest in Ashton to 60% following the sale of a 20% interest in the project to IMC.

“The development of the Ashton underground mine will be advanced, and the foundation for the development of Moolarben will be in place,” the company said.

The 2Mt per annum Ashton underground mine and Moolarben opencut and underground projects are the company’s major development projects.

The company said Moolarben would be a world-class coal mining operation comprising opencut and underground mines, with thermal coal production capacity in excess of 7Mtpa for 25 years.

Opencut mining is planned to commence in 2007 at 4-6Mtpa by 2008. The company said recent drilling confirmed revious exploration results and increased the size of the opencut resource from 104Mt to 275Mt of measured, indicated and inferred resources.

The average stripping ratio is 2.5:1 and less than 2:1 in the area planned for initial opencut development.

Felix is planning to develop a 3-4Mtpa longwall at Moolarben, based on a measured, indicated and inferred resource of 198Mt. Development is planned to start in 2007, immediately following development of the opencut mine, with longwall installation in 2009 and production at full capacity in 2010.