This year’s loss narrowed from $8.7 million a year ago.

The company reported revenue of $55.5 million for the 12 months to June 30, 2006.

Resource Pacific attributed the earnings drop to reduced bord and pillar production, lower prices for coal sales in the final quarter and the hire of additional plant and contract labour for mining expansion.

Total production for the year, predominantly from bord and pillar operations, was 787,000 tonnes.

In May, Resource Pacific completed a $50 million capital raising after it came up short on funds to develop the longwall mine, which is in New South Wales. After a successful raising, the company now predicts the mine will be operational in January 2007 with output rising to 4 million tonnes per annum in 2008.

Newpac is currently completing compatibility testing prior to the longwall equipment being installed underground in October. A new conveyor system has already successfully been installed and commissioned.

A $23 million order has also been placed for four new continuous miners and eight shuttle cars, which will begin to arrive in mid-2007.