Problems associated with the relocation of longwall mining and the upgrade of the conveyor system at the Angus Place mine, resulted in the loss of approximately 800,000 tonnes of production and sales for the financial year. The company said the conveyor system is now operating at design capacity with the mine recently setting new daily and weekly production records.

The 11% drop in the quarterly performance was a result of underground mining stopping at Ivanhoe in March; the sale of Centennial’s interest in the Queensland-based Cook Colliery; and difficult conditions at Angus Place and Newstan as the longwalls traversed through known fault zones.

At the Angus Place mine upgrading of the underground and surface coal clearance systems is now largely complete. The upgrade is designed to increase the capacity of product handling from 1,500t per hour to 2,500t per hour and provide increased belt reliability. Centennial said the belts are now running at design capacity with the mine achieving a record daily production of 16,637t on July 8 and a record weekly production of 71,001t for the week ending July 9.

“Management is confident that the mine is now set up for the long-term to achieve higher levels of performance than previously attained, in particular achieving the production levels required to meet the additional 300,000t contract that commenced on 1 July 2004,” the company said.

At the Springvale longwall mine development performance was meeting expectations in preparation for the move to wider blocks in the December quarter and longer blocks in the March 2006 quarter.

Springvale plans to mine a small opencut area of approximately 300,000 saleable tonnes for the export market with approximately 500,000t targeted for export in 2005.

Newstan longwall mine had a record year, with output of 3.45Mt, and productivity up 12%, despite the December 2003 roof fall and difficult roof conditions.

During October when the longwall is relocated to the new southwest area the longwall supports and hydraulic system will be overhauled. The coal preparation plant will be upgraded to facilitate increased throughput and improved yields, enabling better product flexibility. In addition, Newstan will mine additional coal by augering remnant coal, recovering some 270,000t.

The Awaba bord and pillar operation has been upgraded to operate two mining units with two recently purchased overhauled continuous miners, targeting more than 600,000t for 2005.

Clarence bord and pillar mine produced a record 1.56Mt, slightly below expectations. In April and May, the mine negotiated through a fault area in 609D panel necessary for the long-term ventilation of the mine. June production levels were back on target with a weekly production record of 47,133t and a subsequent daily record of 11,954t.

A third unit for Clarence will enable the mine to raise production to 2.25Mt in 2005 and 2.5Mt per annum thereafter. Clarence supplies around 220,000t to domestic industrial customers with the balance sold into a variety of export markets where its low sulphur characteristic is blended with other coals to improve environmental impact. In such a strong export market, Clarence will be a substantial contributor to Group profitability.

Charbon’s expansion plans for its underground and opencut mines are also well underway with all necessary development approvals now in place to increase production from the opencut. Charbon supplies around 100,000t to the local market with the balance of its production exported.

Berrima’s performance has improved following the introduction of an overhauled Joy 12CM12 Continuous Miner with a new daily record set in early June.

The Mandalong mine project remains on track for longwall kick-off in January, with initial production of 1.8Mt in 2005 financial year and ramping up to 3.5Mt in 2006.

The personnel and materials drift holed through to pit bottom during the quarter and is being readied for the September delivery of the longwall.

Centennial said a number of major overseas power utilities and coal buyers have expressed interest in coal from the Anvil Hill project. Centennial is progressing plans to develop Anvil Hill and is looking to incorporate a wash-plant into the project from the outset. This will allow Centennial to maximise export coal as necessary and adjust the mix of export and domestic products from time to time to suit market demands.