The company grew significantly following the purchase of the ex-Powercoal mines from the NSW State Government in August 2002. These mines have been progressively integrated into Centennial and restructured into separate autonomous business units. This has included restructuring of shifts at all of the ex-Powercoal mines.

 

Total coal production for the quarter was 3.8 million tones with annual production totaling 11.7Mt. The company said this was in line with Prospectus forecasts. All three of the company’s longwall mines performed particularly well during the final quarter, the company said.

 

Centennial’s managed ROM production for the year totalled 13.5Mt with sales of 13.3Mt.

 

The Angus Place longwall mine produced 707,000 tonnes over the quarter, the largest quarter under Centennial’s ownership. A record 11,000 metres of roadway development was driven in the year in preparation for the next longwall changeover.

 

“Following the earlier change in the mine’s management structure to a ‘team/process’ basis, changes were made to work rosters to align them with the new management structure. The early results of this change, including the introduction of Springvale’s proven roof support regime, are encouraging and reflected in the mine’s June 2003 quarterly performance,” Centennial said.

 

The current Angus Place longwall block is the last of the northern blocks before relocation to longer blocks in the new southern area of the mine adjacent to Springvale’s old workings. This relocation will occur during the December 2003 quarter. The new face conveyor will be installed, commissioned and compatibility tested ahead of the move.

 

The Springvale longwall mine produced record output and development rates during the year. Production is up 17% on last year to 2,584Mt with development metres up 9% to 12,905m.

 

The mine is gearing up to expand longwall blocks to 355m in width and 3.8km in length by 2005. As with Angus Place, a new face conveyor will be installed, commissioned and compatibility tested during the next longwall changeover at Springvale scheduled for the December 2003 Quarter.

 

Work has also begun on the construction of a planned ventilation shaft and two service boreholes, centrally located for the future development of the lease.

 

The Newstan longwall mine achieved a series of performance records during the year with a record 3,089Mt for the year and a 10% increase in productivity to 12,315 tonnes per man-year, which is a new pit record.

 

Centennial said the recently introduced ABM 20 Continuous Miners had improved roadway development rates to a new consistent high. Two of the next generation ABM 25 machines are committed for Newstan and two more are being considered for Mandalong.

 

Centennial has completed a review of the Mandalong Underground Mine development plan as part of the acquisition of the Powercoal mines from the NSW State Government.

 

“Following completion of this review and further detailed planning by Centennial’s technical services team, the Directors are pleased to confirm that development is on track with longwall mining due to commence in January 2005,” Centennial said.

 

Mandalong will predominantly service two new power industry supply contracts, totalling 3Mtpa.

 

Sales to the Group’s major domestic customers, Delta Electricity and Eraring Energy, remained strong with both generators lifting tonnage in-line with their various term contracts.

 

In the 2004 financial year, Centennial will sell 85% of its coal to domestic markets, of which 97% are under long-term A$ denominated, index-linked, term contracts.