The new Voest Alpine ABM 25 bolter miner has also arrived on site and is being prepared to be taken underground.

The implementation of the Magatar Mining System is also progressing on target, and is now set to be operational in October - with increased production expected almost immediately.

The Magatar Mining System is a new mining method for Australia which incorporates a continuous miner/bolter paired with a continuous haulage conveyor system and other key elements.

Caledon chairman Robert Alford said the company had also this month sold more than 60,000 tonnes of coking coal from the mine.

The coal was sold under existing marketing agreements at a price in line with industry expectations.

"This significant sale of coking coal represents a further milestone for the company," Alford said.

"The recent arrival on site of the new ABM 25 Continuous Miner together with the

Prairie Haulage System brings the final elements of the Magatar Mining System together."

With the continuous haulage system in operation, Caledon forecasts a production rate of 1.5Mtpa in 2008.

Caledon's 100% owned Cook mine is host to approximately 126.5Mt of resource and in excess of 17Mt of mineable reserves.