Macarthur's Coppabella and Moorvale opencut mines continued the positive trend established in the March 2004 quarter following the start of a second contractor at the Coppabella Mine and production target at the Moorvale Mine being increased to two million tonnes per annum. Together the mines produced 2.5Mt for the quarter.
Company quarterly sales exceeded the record set in the previous period by 1900t with total sales of 1.7Mt.
Macarthur commenced price negotiations for the Japanese financial year 05 during the quarter and expects settlement this quarter.
The company said infrastructure constraints continued during the quarter resulting in ship queues at Dalrymple Bay Coal Terminal. Demurrage costs for the half year to December was $1.10 per tonne higher than the corresponding period last year.
Water shortages in the northern Bowen Basin continued to plague Coppabella and Moorvale. Company management continue to examine options to secure additional water supplies, including looking at the feasibility of piping water from the Burdekin Falls dam.
Macarthur are also investigating the feasibility of capitalising on the global coke shortage through establishing a new generation coke making plant through subsidiary Queensland Coke & Energy and the Stanwell Corporation.
Macarthur will spend $5 million on the study with results expected in the December 2005 quarter.
