“These new coal areas are a natural fit for our Airly and Charbon operations,” Centennial managing director and CEO Bob Cameron said.
“Bordering our Cherry Tree Hill exploration area, adjacent to the western rail line, and importantly with the opportunity to utilise existing coal preparation and loading facilities at Charbon, there are natural economies of scale that these operations can potentially deliver in the future.”
The upcoming Airly continuous miner operation is under construction and expected to start up in early 2010, with production of up to 1.8 million tonnes per annum of export coal.
Meanwhile, a life extension project is underway at the Charbon open cut and underground operation.
Shares in Centennial are up A9c since the announcement on Friday to $2.47.