The producer said it was half-way through a 12-month drilling program for the adjacent Awaba East longwall project to determine the feasibility and mine design required for future production at Newstan.

While longwall production from Awaba East was expected to kick off in mid-2012, a company spokesperson told International Longwall News the start date had been pushed back slightly.

The project is targeting production of 4 million tonnes per annum and Centennial aims to complete the prefeasibility study in the first quarter of 2010 with approvals expected in 2011.

The company also plans to start up a small underground auger mining operation in the southern area of Newstan’s mining lease, about 2km southwest of the surface facilities of the colliery.

Auger mining for the Olstan project will involve drilling large diameter holes horizontally into the face to extract the remnant coal of the Great Northern and Fassifern coal seams.

Centennial has estimated the recoverable reserves at 1.2-1.4Mt, which could be mined at a rate of 500,000tpa for a mine life of three years.

The coal is anticipated to go to local power stations.

To get the auger mining equipment to the seams, Centennial will have to excavate access pits to establish an appropriate highwall.

The company is working to finalise its environmental assessment for a July deadline, while the Olstan project has also drawn the attention of some environmental groups.

Longwall mining at Newstan began in August 1984.