The New Zealand based producer has reported a cash positive result across the 2016 financial year in its latest quarterly report.

Coal production for Takitimu was 59,201 tonnes, which was ahead of forecast for the June quarter and brings total production to 303,000t for the full year.

Bathurst said changes to the equipment selection at Takitimu in the quarter gave positive results as part of the ongoing drive to reduce operating costs at all sites.

Mining continued to progress to the North of the Coaldale pit, concentrating on both the Morley and Beaumont seams.

Overburden removal has been enhanced with the purchase and installation of a Komatsu PC2000 excavator.

This machine replaces two hired excavators. Coal production tapered towards the end of the quarter in line with seasonal demand from the dairy industry.

The mine is developing into an extension block to the north of the existing work area.

Overseas Investment Office approval was granted to allow the finalisation of the purchase of the Black Diamond land. This contains reserves of 1.5Mt and will form the main mining area in about 12 months’ time.

“Rehabilitation of the Takitimu pit has progressed through the quarter with an area formed and shaped ready for seeding over the winter months,” the company said.

Production at Bathurst’s Canterbury mine was 14,580t for the June quarter.

Production capacity at Canterbury is planned to increase in FY2017 with run-of-mine production forecast to exceed 100,000t.

“This is in response to strong demand for Canterbury Coal in nearby markets,” Bathurst said.

“Exploration and planning continue for this development where the increased scale will drive production efficiencies and position the company well for supply into South Canterbury markets.”