Clarence and Springvale operations posted good performances but were offset by approval delays at Myuna and Charbon and two slower than expected longwall changeovers due to supplier delays.

“Our growth in exports, although significant, has been impeded by some delays in obtaining mining approvals, supplier-induced delays on longall changeovers and tight export logistics,” Centennial chief executive Bob Cameron said.

“Furthermore, although NCIG’s ramp-up is slower than anticipated, NCIG’s recent first shipment marks a significant milestone and confirmation of increased port capacity.

“The group should achieve a 10 per cent increase in exports over the 2009 financial year and is set to expand exports further in the 2011 financial year, benefiting from the newly commissioned Airly mine and Mandalong haul road.”

Full-year exports for 2010 are expected to hit 4.6 million tonnes.

The haul road links Mandalong with Newstan’s export facilities and was commissioned last month, on time and on budget.

Centennial’s equity share of run-of-mine production for the March quarter was 3.2Mt, down 4% on the previous quarter and 22% year-on-year.

ROM production for the year to date was 10.5Mt, 3% higher adjusting for the closure of Newstan and Berrima.

Centennial’s usual star performer – Mandalong – produced 1.19Mt for the quarter, slightly down on expectations due to a delayed longwall start-up.

Longwall 9 started in mid-January, with shearer automation and chock control system problems affecting ramp-up. Centennial said these issues had now been resolved.

The mine’s development units performed well, driving 4821 metres during the quarter and setting weekly and monthly records for a single miner unit in the longwall gateroads, with 814m driven in March.

With the new haul road now complete, 155,000t has been transported to Newstan for export.

Modification of the coal handling plant at Cooranbong is progressing to schedule with completion due next month.

The Springvale operation produced 928,000t during the quarter, up significantly from the last quarter with improved longwall conditions.

At Clarence, production was in line with expectations with 516,000t produced.

The installation of a Joy flexible conveyor train has started with good early progress and all major components assembled underground. The FCT will be trammed into the 710 production panel when complete.

Assembly and commissioning is expected to be finished by the end of this month which will be followed by operator crew training.

At Centennial’s newest mine – Airly – good mining conditions have been experienced to date, allowing the mine to last week load its first train of export coal. The mine produced 17,900t of ROM coal from development in the March quarter.

The mine is currently developing the main headings from the surface, with increased support being installed in the “life-of-mine” roadways. This roof support regime, together with delays in equipment arrival, has led to slower than expected ramp-up of production.

Angus Place produced 318,000t, 40,000t less than expected as the longwall changeover was delayed by the late return of overhauled equipment.

Lower production was also experienced at Charbon with 179,000t as rainfall and delays in obtaining government approvals for a lease extension slowed production at the open cut.

The Ivanhoe operation produced 62,000t for the export market and Awaba kicked in 204,000t predominantly for the export market. Myuna’s output was 10% above the previous quarter at 277,000t.

While Mannering produced 18% more than the previous quarter, its performance was still below expectations and is still under management review with several options being considered.

On the new project front, Centennial is continuing exploration at the Newstan Lochiel project and expects to complete a prefeasibility study in the June 2010 quarter.

Exploration has started at the Mandalong South extension with conceptual planning for the integration into the Mandalong mine workings started.

Centennial has also been able to secure five-year exploration licences over about 95 square kilometres in the Western Coalfield which will be collectively known as the Inglenook project.

The company said the Inglenook areas were highly prospective for export and domestic thermal coal and had synergies with Airly and Charbon.

Centennial was trading down 3.54% at $4.36 in morning trade today.