The contract is another boost for Austral, which is currently in the middle of a $135 million expansion with Tahmoor North.

The expansion is expected to create an average run of mine production of just under 4 million tonnes, producing 3Mt of clean coal.

Austral managing director Ugo Cario said this contract reflects the current strong market for coking coal.

"This is the first of several contracts that the company expects to execute with new customers and, which have been enabled because of strategic timing of our mine expansion," Cario said.

"The company has invested heavily in market development over the past two years in preparation for a doubling of production from its Tahmoor North project, which is due to commence at the end of the first quarter of 2004."

Austral raised $22 million for the expansion project back in October through the issue of 40 million unsecured convertible notes. MiningNews.net