The mine is currently a bord and pillar operation delivering around 60% of current output, which totalled 157,000 tonnes (116,000 saleable tones) for the March quarter. Around 40% of output is from roadway development work for the mine’s intended longwall installation.
The mine is operating at an annualised ROM production rate of about 900,000t, producing semi-soft coking coal for Japanese, Korean and Taiwanese steel mills.
“Demand for Newpac’s low ash semi-soft coking coal continues to be strong. The company has secured another contract with a leading Korean steel mill,” the company said.
Meanwhile due diligence on project financing for the longwall, planned for 2006 start-up, is progressing well. The company said it agreed commercial terms with preferred suppliers for the longwall equipment but that a firm order had not yet been placed.
The mine has a 240 million tonne resource base, with 74Mt at reserve status. Longwall panels are expected to be 250m wide and will range in length from 1.2 to 2km. Competent coal seam roof conditions and structure are expected to make this a high productivity operation.
Pillar extraction in the North West Block is continuing and development of a new extraction panel has begun. Development drivage confirmed the presence of two further dykes, in line with expectations.
Five year haulage contracts have been signed with Pacific National and Queensland Rail to haul increased production when the longwall comes on-stream.
