Installation of the underground conveyor system at the New South Wales mine is now 90% complete and excavation to install the new drive motors and other infrastructure is underway. They will be installed over the Christmas shutdown period.

Geological conditions have remained in-line with the company’s expectations, and accordingly, development of the main roadway headings through the block fault zone are going to plan.

The only hiccup during the quarter occurred at Newpac’s current bord and pillar operations where a series of breakdowns of ageing equipment, including the mine fan motor and conveyor drives, resulted in a one-off production loss of 39,000t of saleable coal. The equipment is due to replaced next quarter as part of the mine expansion.

Total ROM production for the quarter was 223,000t, yielding 165,000 saleable tonnes.

During September, Resource Pacific signed a 10-year 500,000tpa coal contract with Indian coke producer Gujarat NRE Coke, which also bought shares that raised $A8.1 million.

Resource Pacific has submitted its five-year sales forecast to Port Waratah Coal Services under the new three-year take or pay arrangements. Volume allocation for 2006 is expected next quarter.