Coking coal produced from the mine came to 91,000 tonnes for the quarter, 10% higher year-on-year.

Thermal coal production reached 18,000t, a 20% gain on-year.

Caledon said raw coal production was in line with the June quarter 2008 at 129,000t, but the saleable coal production increases were due to washing raw coal on hand at the end of March.

Coking coal sales were 91,000t, 14% higher year-on-year, while thermal coal sales were 13,000t, a 13% dive year-on-year.

Caledon made its annual coal contracts at $107/t in April, and noted the price decline from last year was similar to what has been experienced by other coal companies.

Costing $A819,000, exploration during the June quarter at the Minyango deposit covered five holes drilled for a total of 1312m.

The company has entered into a data-sharing agreement with coal seam gas explorer Bow Energy which will see Bow fund the cost of one of Caledon’s holes and provide the results of another hole it has drilled.

Caledon is still flagging the possible sale of an interest in the company and its assets and said it was currently involved in discussions with a number of parties and has advised its shareholders to take no action at this time.