The mine area was struck by record December rainfalls of 350mm, 32mm above the last December record and beyond the average rainfall for this month of 97-253mm.
This wet weather cut off access to the mine and also flooded the N1 pit along with the coal handling and processing plant.
“Force majeure was declared on the existing sales contracts due to the inability of the mine to process and deliver coal while recovery and repairs were undertaken,” Aquila said.
Production from the CHPP was 0.39 million tonnes in the December quarter, compared to 0.6Mt in the corresponding period of 2009 and 0.68Mt produced in the previous quarter.
While the deliveries will take place during 2011, the mine managed to make 0.625Mt of coal sales in the December quarter, up 27% from the previous three months.
The construction of the dragline to ramp up the mine only lost minimal time despite the severe weather and Aquila said it was on schedule for completion in the June quarter.
The definitive feasibility study for its up to 2.6Mt per annum Washpool hard coking coal project is on track for completion in the September quarter.
Consultancy GHD is undertaking the surface infrastructure component, DRA Pacific is working on the CHPP study while Xenith is undertaking the mining study.
Coal from the project will be exported through the planned Wiggins Island Export Coal Terminal, which is due to start shipping in 2014.
More exploration and modelling is planned at Aquila’s Talwood coking coal project next door to BHP Mitsubishi Alliance’s Goonyella Riverside mine, northwest of Moranbah.
Aquila has already significantly upgraded the resources from 83.4Mt to 246.6Mt in December.
The heavy wet season also impacted a field program, including 2D seismic work, for Aquila’s Eagle Downs longwall project next to BMA’s Peak Downs mine in the Bowen Basin.
The definitive feasibility study remains underway for the project, which could produce 4.6Mtpa from a single longwall in 2014 and potentially 8Mtpa in 2020 through a second longwall operation.
Aquila has applied for port capacity from the second stage expansion of WICET for the project, expected to be available in either 2015 or 2016.
Shares in the company closed down 10c to $9.17 yesterday.
