Raw coal production for the September quarter was 139,000 tonnes, while coking coal output fell 29% year-on-year to 87,000t.

Accordingly, coking coal sales were down 31% year-on-year to 84,000t.

Thermal coal production in the September quarter was 23,000t, up 4% year-on-year, while thermal coal sales reached 50,000t. The mine did not produce any thermal coal in the September quarter last year.

Caledon ceased mining with its Magatar system during the quarter, instead relying on its Joy continuous miner and shuttle cars to focus on secondary extraction of previous workings.

Caledon said there were sufficient primary workings in the area for the continuous miner operations to continue until early 2010.

“This also provides time to perform scheduled maintenance on the major components of the Magatar system in addition to relocating it to the newly developed area immediately to the south of the access drift,” the company said.

“This will facilitate significant efficiency improvements due to a shortened travel time and much lower infrastructure support and maintenance activities.

“By way of comparison, the current workings in the north are approximately four kilometres from the bottom of the drift.”

Caledon plans to progressively seal off the northern section of the mine as mining is completed and equipment is retrieved.

From this point, the mine will focus on the newer and more accessible Argo pit bottom area.

“As part of this relocation the company's recently refurbished wide head Joy 12CM12D is now fully utilised in the south developing roadways in preparation for the recommencement of mining with the Magatar system in January 2010,” Caledon said.

The producer is on track to reach its goal of 500,000t of saleable production from the mine this calendar year.

Cook produced 442,000t of raw coal for the first nine months of 2009, up 14% year-on-year, along with 297,000t of coking coal and 64,000t of thermal coal.

Caledon also updated shareholders on the potential sale of the company.

“There is no certainty as to the timing, terms or structure of any transaction nor that an offer will be made for the company. Shareholders are advised to take no action at this time.”

The producer spent $A338,000 on exploration of its Minyango deposit in the September quarter.

Mining of Minyango is targeting 4 million tonnes of run-of-mine production per annum through a longwall with only a 50-70m wide face.

Cook’s wash plants and rail infrastructure will be used for Minyango, making Cook a larger mining complex.

Shares in Caledon closed up A20c to $1.16 yesterday.