Coal sales also hit a record of 1.04Mt for the quarter, up 22% year-on-year.

Export sales comprised 343,000t of metallurgical coal, 776,000t of thermal coal and domestic thermal coal sales were 25,000t.

The company says it has locked in export sales tonnages and prices for the majority of planned production until June 30.

Whitehaven’s Gunnedah Basin mines reached 812,000t of ROM coal production for the September quarter, 65% higher than the corresponding period last year, while the Werris Creek surface operation increased output 9% to 295,000t.

To be ready for the completion of Newcastle Coal Infrastructure Group’s export terminal in March, Whitehaven has started preparatory work to expand its suite of open cut mines to a combined total of 5.5Mt per annum of saleable coal.

Whitehaven anticipates the expansion of its Werris Creek, Tarrawonga, Rocglen and Sunnyside mines to occur in the next nine to 12 months.

Meanwhile, the company has wound up its Canyon mine and is aiming to complete rehabilitation of the site before 2010.

Whitehaven’s upcoming North Narrabri underground operation is now expected to complete its three drift tunnels around late January, when it will also intersect the 9m-thick Hoskinsons seam.

The company is seeking an underground workforce of 60 people and the equipment for the first-stage continuous miner operations.

An application has been made to the New South Wales government for stage 2 development, to turn the operation into a longwall mine.

Having recently awarded the longwall contract to Bucyrus, Whitehaven expects the longwall to be delivered in the December quarter of 2010 and installed in early 2011.

Total costs for stage 1 development of North Narrabri are still on budget for $A185 million, while stage 2 is targeting capex of $300 million.

The company is also expecting to receive $125 million from the sale of 7.5% of the Narrabri joint venture to the Korean consortium of Daewoo International and Kores.

The Foreign Investment Review Board has approved the deal, which is now awaiting approval from Korean authorities.

In an update on the industry’s Hunter Coal export arrangements through Newcastle for 2010, Whitehaven said it should have access to at least 9.5Mtpa of capacity from port operators NCIG (stages 1 and 2) and Port Waratah Coal Services.

Whitehaven ended the quarter with cash of $286 million and no bank debt, but does have $87 million in equipment finance leases and other interest-bearing liabilities.

The company paid out a 6c per share dividend at the end of September, keeping to its policy of paying half its net profit after tax as dividends.

Shares in Whitehaven shed 4c to $4.11 this morning.