The Canadian producer reported 470,000 tonnes of coal sold in the three months ended December 31, versus 360,000t sold in the corresponding 2008 period.

Total sales for the first nine months of the fiscal year were up year-on-year from 950,000t to 1.34 million tonnes.

The growing demand has GCC anticipating 1.6-1.8Mt in sales volume for fiscal 2010, up from the previous guidance of 1.5-1.7Mt.

As well as the demand recovery from its traditional customers, GCC has landed sales to new customers in China.

The producer is expecting a $US115-125 per tonne price range for its coal sales this financial year, which includes carryover tonnages, fixed contracts and spot deals.

“The demand for metallurgical coal is expected to be strong in fiscal 2011,” company officials said.

“Grande Cache Coal has commenced discussions with customers with respect to coal sales for the next fiscal year ending March 31, 2011, and is expecting sales volumes in the range of 2 to 2.2 million tonnes. Final contract pricing will be dependent on market conditions.”

GCC also updated the status of its new No. 8 surface mine, which received final regulatory approvals in December.

Development has started along with initial surface preparation and road construction.

"We are pleased with the industry outlook for the next year that is forecasting strong demand for metallurgical coal and improved pricing," president and chief executive officer Robert Stan said.

"Our company has been successful in a challenging economic environment during the past year, and is well positioned to take advantage of growth opportunities over the coming years.

“We are proceeding with the development of our No. 8 mine and the further steps required to increase production at our existing operations to 3 million tonnes per year by fiscal 2013."

GGC is targeting 3Mtpa by the 2013 fiscal year.