The Xstrata subsidiary recorded a net profit of A$3.78 million in 2003, with the bulk of profits generated from its open cut operation.
The company returned to profitability despite difficult market conditions characterised by a strengthening Australian dollar and weak coal prices in 2003.
Following the decision to close underground operations due to geological conditions, the remaining two developed longwall blocks in the western area were completed and 1.3 million tonnes of run of mine coal was delivered to the coal handling and preparation plant.
Closure costs, including redundancy payments, were accounted for in the Company’s annual results.
The underground mining equipment from Cumnock has been bought to the surface and will be sold in auction or trade sale this year.
