The quarterly results were 31% up on the previous quarter while ROM output of 6.36Mt for the half year was 9% better. This strong production was achieved despite longwall changeovers occurring at several operations.

 

The company said expansion of output at Angus Place and Clarence/Charbon and higher production at Springvale and Newstan/Awaba were behind the production jump. The export-led expansion of capacity at Charbon and Clarence continued with production from both operations on a steady increase.

 

Angus Place longwall produced 705,316t during the quarter with longwall performance exceeding budget, though development was below expectations.

 

Centennial said it expected an improvement in the poor roof and floor conditions in the development areas. The mine’s dewatering system will be reviewed during the quarter and is expected to improve both production and coal quality from the longwall in future periods.

 

Production from Centennial’s 85% owned Clarence bord and pillar mine was hampered by variable geological conditions and poor equipment availabilities.

 

Shuttle car breakdowns severely affected production and several cars were released for rebuilds.

 

Centennial said production should improve considerably in the next quarter following recommissioning of the rebuilt cars and delivery of four new shuttle cars and a new Joy Mining Machinery 12CM12 continuous miner.

 

The 50% owned Springvale mine produced 317,501t, well in excess of expectations, with longwall and development performances on target.

 

“The higher production was due to an additional volume of coal in one of the longwall panels with consequent deferral in relocating the longwall unit,” Centennial said.

 

Springvale concluded its current longwall block in the quarter and will move to the wider 410 Panel in the next quarter and longer panels at the end of the 2005 financial year, driving further productivity improvements.

 

Mining at the Lamberts Gully open-cut operation started during the quarter. Located adjacent to the Springvale Coal Services facility the mine has been brought on stream to produce around 25,000 tonnes per month to supplement supply for both export and local markets for the next 14 months.

 

Newstan longwall mine’s production for the quarter was above expectations with Newstan/Awaba producing 585,804t.

 

Completion of the panel was delayed by difficult ground conditions but face better conditions after traversing the fault zone. The longwall changeover started at the end of the quarter and mining in the new southern area which has longer blocks began January 2.

 

Centennial’s newest mine Mandalong, commenced longwall operations on January 24 and will initially supply coal to the Eraring Power Station under an 18-year, 1.5Mtpa contract.

 

The company has plans to increase production from January 2005 to an annualised rate of 3.5Mtpa by the end of 2005 to meet contract requirements.

 

The new Mannering Colliery (previously Wyee) started production on January 12. The mine has been established as an underground “super-panel” continuous miner operation using the same configuration as used successfully at other Centennial operations including Clarence and Charbon.

 

The company’s safety performance continued to improve during the December quarter. Both the

Total Recordable Injury Frequency Rate and the Lost Time Injury Duration Rate further improved while the Lost Time Injury Frequency Rate is lower than the 2004 financial year and continues to trend favourably down.