The Illawarra mining group produced 418,000t of run of mine coal in the December quarter, up 52% quarter on quarter.

“A strategic review of development and production schedules for both mines (Wongawilli and NRE No.1) has identified the need to focus on development in the short term so that production growth can be achieved in the longer term, resulting in an overall production target of approximately 1.7 million tonnes for 2010-11,” the company said in a statement.

“Construction of the Joy Longwall System for NRE No. 1 Colliery continues on schedule, including testing of key components in the UK.”

At NRE No. 1 the development of the Wonga East area continued in the quarter.

The two MB670 continuous miner units completed 1128 metres of driveage during the quarter.

This involved mining through the final fringe of poorer roof conditions caused by a sill in the roof, which induced significant changes to strata lithology and the strength of the local rock.

Improved production rates are expected in areas where extraction through sill-affected areas has been completed.

The Tailgate roadway for the first longwall block (TG4) continued in Q3 with 434m being completed.

“Mining conditions remain good and production levels continue to improve as mining systems are optimised,” the company said.

The company’s drift program continued in the quarter. This program is to create long-term connections from the Wonga East area to No. 4 Shaft facilities and future mining areas.

During the quarter the AM75 roadheader was demobilised with the introduction of shot firing to overcome sections of harder lithology in the R Drift. It is anticipated that coal production will commence in the P/R Drift Bottom area in the current quarter.

Extensive gas drainage operations of mining areas connecting No. 4 Shaft facilities to the Wonga East area continued on schedule in the quarter. Approximately 5560 drilled metres were completed in the quarter.

“This drilling, whilst being invaluable for gas drainage and safe mining operations, also provides useful information on coal seam and geological conditions in advance of mining,” the company said.

Bulli Seam production continued in the quarter. The 310 Panel has now been completed with 312 and P Panels to be completed in the current quarter.

Personnel from these areas are being reâ€Ã‚allocated to the Wonga East Development area to expedite development and improve longwall continuity through the Wonga East Area.

In the X Mains, fall recovery operations to gain access to strategic extensive western Bulli Seam reserves have commenced. It is anticipated these operations will take 12 months to complete.

At the NRE Wongawilli Colliery Longwall 11 production continued during the December quarter.

During November, the face line was widened to its normal operating width of 165 metres. This task was completed safely and as planned.

Production delays were experienced during the quarter as a result of roof fall on the longwall due to “localised geotechnical issues”

Development continued in the Eyre and LW20 panel and an 885m advance was achieved during the quarter.

LW19 secondary support continues to proceed well, the company said.

“All works are expected to be complete during the next quarter, in time for the start of Longwall 19 production,” it said.

“Full project planning for the Hicks 2 panel has been completed and works have commenced. On completion, Eyre development panel will relocate and commence development of gate roads in the Nebo area of the mine.”

The 33kv Power Supply project has been delayed due to a seven week industrial dispute at the 33kV cable supplier’s production facility, forcing the company to source the required cable for the project from an overseas supplier. Receipt of the cable is expected during February 2011.

Accordingly, planned changeover is now scheduled during the first quarter of 2011.

The work is progressing to transfer the essential 33kV supply from the BHP Billiton/Bluescope network to the Integral Energy network for the Nebo No. 4 Shaft which is a main source of ventilation for the mine.

Rains have also affected Gujarat’s operations, despite it being located in New South Wales and away from the floods in Queensland.

“Due to wet weather conditions throughout the months of November and December we cancelled two planned outages for changeover due to restricted access for line and pole upgrades,” the company said.

“Due to wet weather continuing in January, the company is now anticipating completing this project in February 2011.”

NRE Wongawilli Colliery has begun preparation for the western expansion of its operations.

Preparation of Ventilation Shaft Pt3A application and preliminary environmental assessment (PEA) for lodgement with the Department of Planning (DoP) is underway for a ventilation shaft to provide fresh air to the proposed first workings and longwalls in the Avon Domain to the south and west of the existing colliery workings. This application should be lodged in January 2011.

An application for the domain to the south and west of the existing colliery workings should be lodged in January 2011.

Concept plans for a surface facilities upgrade are being developed to provide a basis for the preparation of a Pt3A application and PEA to increase the coal handling capacity from 2Mtpa to 3Mtpa at NRE Wongawilli. This application is expected to be lodged with DoP in 2011.

Preparation for the Pt3A application for the Avon Domain longwalls has also begun. Initial environmental monitoring work to provide the 2 year baseline environmental data required to accompany a future Pt3A application is being commissioned and will be commenced in early 2011.

Gujarat’s share price was up by 0.5c to 83.5c in morning trade.