Over the last year, the mine's activities have focused on roadway recovery and relocating operations to the western area of the mine where a fully developed block was left by previous owner Shell, when the mine was sold to Allied.

Deterioration of some roadways resulted in floor heave of up to 2m in places that development crews have cut through. Over 6km of roadway has been recovered to date. Further roadway development will be required over the longer term for ventilation.

At present, the mine is in the process of developing the face line and installing longwall equipment in the new block. The block dimensions will be 185m wide and 800m long. Maingate equipment has been refurbished and chocks have been fitted with base-lift and heavy-duty relay bars to accommodate softer floor conditions in the western area.

Two pillar extraction units are currently working in the North Mains and Cataract North areas to supplement production while the longwall is developed. Production averages 13,000 tonnes and 10,000t per week, respectively. As soon as the longwall goes online, pillar extraction in Cataract North will cease.

Mine manager John Milner said the mine should have reached its annual budgeted capacity of 2.5 million ROM tonnes by July.

Meanwhile, Premier Bob Carr announced last week that Bellambi would be the site for the first Australian testing of "American narrow coal seam mining". The $5 million trial will examine introducing thin seam conventional mining in the 1.45m thick Balgownie seam. The operation is to be styled on thin seam mining practices used in West Virginia in the United States. Up to 5Mt of high quality coking coal will be extracted. Production is scheduled to begin towards the end of the year.

Bellambi West is owned and operated by Allied Coal, part of the Allied Group that comprises contracting division Allied Mining and equipment hirer Allied Plant Services.