Compared to the previous corresponding period, coking coal production was 58% higher at 106,000t in the December quarter, while thermal coal production accounted for 17,000t, 36% higher.

For sales, 105,000t was sold in the December quarter, 72% higher than the 2007 corresponding quarter, while thermal coal sales hit 36,000t – a whopping 142% increase.

Caledon said the mining of the second panel using the Magatar linear continuous mining system was completed in early December.

Since then, the company said, the focus had been establishing access for the three next panels.

“These are at right angles to the second panel and utilise that panel's conveyor belt structure,” Caledon said.

Meanwhile, the London-listed company said coal production from roadway development at the pit bottom continued during the quarter.

Caledon is known for successfully bringing the Magatar continuous haulage system into Australia.

While continuous haulage has been used in South Africa for decades, the mining system has previously had a disastrous history in tough Australian conditions.

Last month Caledon slashed its 2009 production outlook by more than half from 900,000 tonnes to a minimum of 400,000t because of declining coking coal demand.