Run-of-mine production under Centennial management was 5.3 million tonnes for the quarter and 20.5Mt for the 2008 financial year. Centennial's equity share was 4.3Mt and 16.9Mt respectively.
The company said on a like-for-like basis, taking into account the sale of Tahmoor and half of Angus Place, production was up 19% for the quarter and 15% for the year.
“The 2008 financial year has been underpinned by strong production and the recent settlement of a record export thermal price,” Centennial CEO Bob Cameron said.
“The strength of our operations and high prices bode well for a significant uplift in profitability for the 2009 financial year."
Centennial has been able to take advantage of spot prices, reporting it will achieve $US170 per tonne for a shipment next month.
The Mandalong longwall was the strongest mine producing 1.58Mt for the quarter and setting a new annual record of 4.68Mt.
Angus Place produced 695,000t during the quarter, totalling 3.21Mt for the year – 21% above expectations.
Towards the end of the quarter, Angus Place commenced the installation of new longwall roof supports and conveyor pan-line, enabling a partial pre-installation of LW950, ahead of the recovery of the old longwall face which began mid-June.
Commissioning of the new face is expected to be completed soon.
The Springvale longwall produced 992,000t during the June quarter and 3.2Mt for the year – which included production from the Lamberts Gully opencut mine.
The trial of a 24/7 longwall operation earlier in the year proved successful and Springvale will now adopt the new shifts putting it on schedule to achieve 3.9Mt in the 2009 financial year.
At Newstan 434,000t was produced during the June quarter, and 2.71Mt for the year.
Centennial said longwall production continued to exceed planned output prior to the longwall changeover bolt-up sequence to move the Springvale longwall around a series of faults from longwall 24A to 24B in April.
Centennial said the changeover was achieved ahead of plan, with operations recommencing in the second week of June. However, in the last week of June, mining operations experienced increased water-make on the longwall face resulting in reduced output over the following two weeks.
During the June quarter a decision was made to mine as much of the adjacent LW25 as possible and negotiations with statutory authorities and a contractor are well advanced to commence development drivage of LW25B and LW25C. Centennial said the areas will extend the life of the mine.
At the Charbon mine 1.24Mt was produced for the year with better control of seam roof dilution resulting in improved product yields during the quarter compared to previous periods.
Charbon is planning to restructure its shift arrangements early in the September quarter.
The company is also looking to extend the life of Charbon and is currently assessing several options.
The Clarence operation produced 426,000t during the June quarter, up on previous periods as operations moved into a more favourable mining environment. ROM production for the year was 1.63Mt.
The Clarence team is now looking to increase production through the introduction of a Joy Flexible Conveyor Train in the 2010 financial year. The FCT will replace part of the shuttle car fleet.
Myuna enjoyed its most productive quarter in three years, producing 354,000t and 1.17Mt for the year.
Awaba produced 216,000t for the quarter and 773,000t for the year and will continue producing until early 2010 after Centennial decided to extend the mine's life.
At Mannering 202,000t were produced for the June quarter and 835,000t for the year.
Mannering received development consent approval during the quarter to extract up to 1.1Mtpa until 2018.
The Berrima mine produced 232,000t for the year with June quarter production down as the crew concentrated on main drive heading to prepare for the next extraction panel.
Looking ahead, Centennial is assessing several projects to increase production and take advantage of record export prices.
The group has progressed work on a feasibility study for Awaba East which includes exploration drilling to prove up reserves and a mine plan for a 4Mtpa longwall operation.
Centennial said much of the nearby Newstan infrastructure could be used for the new mine, allowing it to bring Awaba East online quickly and inexpensively.
Centennial said longwall mining could commence as early as mid-2011.
A final design is underway to construct a haul road linking Mandalong to Newstan enabling it to use Newstan's spare washing capacity and rail facilities.
Mandalong is also considering a longer-term operation involving the construction of a rail loop and possible coal handling and preparation plant. The rail loop would have both a northern and southern exit, enabling Mandalong to rail to Port Kembla or Newcastle Port.
Centennial is assessing a proposal to construct a 1.5Mtpa thermal coal mine at Airly. The operation will include a rail loop to deliver coal to Port Kembla.
An engineering design is underway to upgrade the loading capacity at the Lidsdale Siding, adjacent to Springvale, to take additional export coal from the group's Western Operations.
Preliminary design work has begun on several opencut projects, including the Nuebecks mine which could produce 1Mtpa and be online in 2011.
Centennial was trading down 1.3% mid-morning at $A4.48.
