The $1 million profit compared favourably to a loss of $36.2 million in the first half of 2002. The 2002 result included an extraordinary expense relating to writedown in underground mining assets of $21.3 million.

The latest result includes redundancy costs of $4.6 million from the closure of the underground mining operations expected in September upon completion of the remaining longwall block.

Sales revenue was up 37% compared with the first half of 2002 reflecting increased production and an advantageous US$ hedging position.

Production increases of saleable coal, up nine per cent to 822,000 tonnes were largely due to the start of the Cumnock open cut, which offset lower underground production.