The company said that for the second consecutive quarter production from longwall panel 19 at Tahmoor had delivered consistent and historically high production rates in excess of budget predictions.

Operation of the longwall seven days per week was instrumental in achieving this performance. In addition the company's considerable investment in engineering repairs and upgrading the longwall's hydraulic system was a significant contributing factor in reducing operational downtimes.

"Mine development was on budget with 1745 metres completed for longwall panels 20 and 21," Austral said. "Development rates continue to improve, compared to the development of longwall panel 19, as better conditions are encountered. Development rates will improve further from April with the introduction of the first of two new Joy 12CM30 continuous miners."

Austral is accelerating work on the Tahmoor North expansion. Installation of the $11 million North West conveyor is on schedule for completion in July and contracts for the supply of conveyor belting, electrical and mechanical components were issued during the quarter.

Specification for upgrading the drift conveyor to 2000tph has been drafted following an extensive technical review. This is double the proposed capacity in the International Mining Consultants feasibility study.

"Specification for a new longwall system, which is the major component of capital expenditure required to double production at Tahmoor, has commenced with the appointment of John T Boyd Company (Australia) Pty Ltd as consultants," Austral said.

"Over the next 18 months JTB will assist Austral in design specification, prototype testing, compatibility trials and final commissioning of the new longwall system."