Year-to-date sales of 2.4 million tonnes were on course to exceed the company's 4.5Mt annual sales target.

The Queensland producer declined to comment on full-year profit guidance as it waited on 2006 Japanese financial year negotiations with buyers to play out.

Macarthur’s Moorvale mine performed well during the quarter with an annualised rate of saleable coal production at 1.9Mt.

Quarterly saleable coal production at the Coppabella Mine was lower than planned due to a number of operational and equipment maintenance issues affecting the two contractors operating at the mine.

Maintenance of major mining equipment will take place in the March 2006 quarter, but Macarthur said this was unlikely to affect the sales program as stockpiles will be used to supplement coal production.

Macarthur progressed in leaps and bounds with its Olive Downs development project during the quarter. The company submitted its mining lease application in November, and will not have to submit an Environmental Impact Statement as the project does not have the “potential to significantly impact matters of national environmental significance”

Mine development is expected to begin in the December 2006 quarter with targeted production set at 1Mtpa over the 10-year life of the project.

Progress on Macarthur’s prospective underground mine was made during the quarter, with preparation for a detailed core drilling and analysis to support a pre-feasibility study for the Moorvale Mine. If given the green light, the mine would be accessed off the opencut highwall.