The company produced 2.5 million tonnes during the quarter, up 24% on 2008 levels and up 17% for the nine months to April 30.

Increased production from the New Acland mine combined with production from the re-commissioned Jeebropilly mine more than offset declining output from the New Oakleigh operation.

New Oakleigh was scheduled to wind up in February this year, however a resource evaluation had shown minor amounts of additional coal that will allow continued operations at a lower production rate of 200,000 tonnes per annum.

The expansion of the New Acland mine to 4.8Mt from the first quarter of 2010 has continued on schedule.

New Hope said the majority of additional mobile fleet is already onsite, and the design for the upgrade of the second coal handling and preparation plant was well advanced.

New Hope was trading up 0.3% mid-morning today at $A4.18.