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Caledon beats the odds

CALEDON Resources bucked the trend for Queensland coal producers in the March quarter, increasing...

Blair Price
Caledon beats the odds

Workers could not get to the underground mine for the first half of January because of flood-related road closures, but otherwise the mine had minimal structural damage and swung back to normal operation in the following two weeks.

Coking coal production was up 23% year-on-year to 121,000t in the recent quarter, while thermal coal output jumped 50% to 21,000t.

Coking coal sales also surged 21% year-on-year to 123,000t.

The production gains compared to the March quarter of 2010 reflected even tougher challenges for the Cook mine at the start of last year.

At this time, the mine was behind on development due to the relocation of its Magatar continuous haulage system, while there were significant workforce changes and 24% fewer production shifts than the March quarter of 2009.

Caledon said its average coking coal price achieved for the recent quarter was $US214/t.

While the company struck contracts of $309/t for this quarter, the carryover tonnage from this March quarter is expected to result in average June quarter pricing of $258/t.

Minyango project gets federal environmental clearance

The Minyango underground project covers 3325 hectares near the Cook mine, and BHP Billiton Mitsubishi Alliance’s Blackwater open cut mine.

Targeting up to 9 million tonnes per annum run-of-mine, first coal is slated in 2014 and initial mining will need 310 operational workers to produce 3Mtpa of saleable coal.

Caledon applied for federal government environmental approval in January, and has since received notice that the project meets the requirements of the Environment Protection and Biodiversity Conservation Act.

This clearance is expected to help Caledon advance the planning work for the environmental impact statement required for state government approval.

Caledon said aspects of the feasibility study, mainly for infrastructure such as power supply and the coal handling and preparation plant, started in the March quarter.

The company also provided a brief update on the proposed Wiggins Island Coal Export Terminal, noting that tendering and contracting processes were underway for construction and site works.

Caledon shares are unchanged at $1.555.

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