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Coal sales were down 25% from FY2004 third quarter levels which Excel attributed to lower production and timing differences in shipping schedules.
Run of mine production for the quarter was 1.23 million tonnes, with year-to-date levels at 4.5Mt.
New South Wales mine Metropolitan produced 291,000ROM tonnes for the quarter, down 30% on 2004. Year-to-date production from the longwall was 1.21Mt, up almost 9% year on year.
Production at Chain Valley underground mine near Lake Macquarie was down 19% to 101,000ROM tonnes on the corresponding period last year despite a new production unit providing additional tonnage. Difficult mining conditions were blamed for the fall.
The Chain Valley team will begin mining in the Fassfern seam, 30m below the current seam, in early June. Development of the new seam will extend mine life by 20 years.
Excel also had a busy quarter laying down plans for future development for subsidiary Millennium, entering the Red Mountain Joint Venture with BHP-Mitsui Coal to share infrastructure.
Millennium also acquired additional coking coal reserves as part of the deal. Excel increased its ownership of Millennium to 85% during the quarter.
The company also completed further drilling of its Venezuela interest and confirmed the opportunity for a small-scale, early mine development at around 500,000t per annum. Mine production was expected in early-2006.
Hard coking coal contracts for the Japanese financial year (beginning April 1) were settled at $US125 and $US130/t FOB. Wambo’s export thermal coal was settled for FY2006 at $US53/t FOB.
