Austral had forecasted a profit of A$10 million for the December 2003 financial year, but have revised the estimate due to slower than anticipated extraction rate of longwall panel 21, the last to be mined in the Tahmoor lease.

The slow going has resulted in a deferral of planned coal shipments, which will reduce 2003 second half earnings to around first half levels.

“Recent longwall performance has been adversely affected by mining conditions leading to frequent and intermittent mining stoppages. This was unexpected and is believed to be limited to a localised area of the current longwall panel,” the company said.

Austral said the longwall is expected to mine through the zone and resume close to normal extraction rates within the next month.

The completion of panel 21 has now been pushed back to early March 2004 and the new longwall will be installed in Tahmoor North where mining and gas conditions are currently being experienced and are considerably more favourable.

The delayed completion of longwall panel 21 is not expected to influence the scheduled start up of the first Tahmoor North longwall panel.

Progress on the new longwall remains on schedule, with mini-build compatibility trials successfully carried out at DBT’s facilities at Rooty Hill.

The remaining longwall shields are due to arrive in Australia on December 21. Training of longwall operating crews has commenced with the transport of the longwall equipment underground scheduled in late December.