“To ensure the longwall expansion remains on track, the company is focusing on work vital to its development. This has involved hiring additional plant, particularly continuous miners, and contract labour. There has been some adverse impact on production from bord and pilar mining operations,” the company said in its March quarterly report released today.
Coal production during the quarter was 26% above 2004 results at 198,000 tonnes, yielding 145,000 saleable tonnes.
The company said mining conditions continued to be favourable with competent coal seam roof conditions and structure.
Late last month Resource Pacific announced a $A50 million share placement to fund the development of its longwall. The raising has been divided into two tranches with the first already raising $21.6 million. The second is subject to shareholder approval on May 4.
On forward sales Resource Pacific has committed about 40% of production for 2007 at an average price of $US55 per tonne.
The company is awaiting the outcome of negotiations between Japanese steel mills and other Australian suppliers before entering into further contracts.
