This compared with production of 423,000 ROM coal for the December 2000 quarter - an increase of 27.6% - and represents an annualised production rate of more than 2 million tonnes a year, the company said.
The high production rate at its Tahmoor mine, south of Sydney, follows the introduction of seven-day longwall production in November which will be continued until the completion of longwall panel 19 in mid-2002.
Austral managing director Ugo Cario said the market for metallurgical coking coal remains tight despite some easing in the price of steel products. Demand for metallurgical coking coal, including the company's coal products, remains strong with spot prices in some markets around US$50/tonne.
"The recently introduced seven-day longwall production will maximise availability of the company's saleable coal products to meet the requirements of its customers," Cario said.
Coking coal is forecast to remain in short supply for the foreseeable future, according to Austral, and the company expects to increase the average price of its coal products at the conclusion of the current contract price negotiations.
Cario said mining of longwall panel 19 commenced post changeover in October with excellent mining conditions that had enabled Tahmoor to deliver consistently high daily production rates throughout the quarter.
"At an annualised rate of over 2Mtpa this is the highest quarterly production rate since June 1998," Cario said.
"A total of 1021m of underground development were completed in the northern part of the lease assisted by benign gas conditions that are vastly improved compared to those encountered in the last two years in the southern part of the lease.
Another 9205m of in-seam drilling of panels 20 and 21 were completed. "As expected, gas flow rates have improved considerably. Drilling for gas drainage and exploration commenced for the first longwall panel in Tahmoor North."
Cario said an order has been placed for a second new $3 million Joy 12CM30 continuous miner. The first of the two continuous miners, specifically engineered to suit Tahmoor mining conditions, will be commissioned in March 2002 and the second in June 2002.
The new miners and two new bolting machines will more than double current development rates when both are commissioned.
Tahmoor escaped direct impact from bushfires that ravaged New South Wales in late December, however production was disrupted both as a result of employees taking time off to protect property and also smoke being drawn into the mine ventilation circuit which reduced operating time.
Rail transport from the mine to the port was halted from December 24 until January 2 when the main rail line was shutdown by the authorities.
This reduced availability of coal at the port and deferred some sales into 2002. The estimated impact on 2001 pre-tax operating profit through reduced production and deferred sales is $750,000, Austral said.
The contract for the underground refurbishment and installation of the new 4000 tonne per hour North West belt system was awarded in December. The $11 million project, to be completed by July, will provide state of the art coal haulage for the extraction of panels 20 and 21 during 2002-3 and the Tahmoor North longwall panels.
The Tahmoor North feasibility study has been reviewed in the light of geological information confirmed through an extensive exploration program undertaken throughout 2001. As a result a revised longwall panel layout containing a significantly reduced mining risk has been finalised and approved. Gas drainage prior to development of this layout has begun.
