Ashton's longwall total was reduced due to a longwall changeover, with the wall recommencing on schedule during November.

At the producer's other mines, Minerva and Yarrabee were restricted by rail capacity with Queensland Rail running at approximately 90% of contract.

At Moolarben - Felix's newest underground development - construction is scheduled to commence in June this year. Completion is expected within the December quarter of 2009.

Felix said the timing would work in with the new terminal at Newcastle Port which is scheduled to load its first cargo in early 2010.

Felix has also been progressing talks on its Ultra Clean Coal process.

"In the company of WorleyParsons USA meetings have taken place with US Power Generators who are actively looking for new technologies for the future expansion of their power generating capacities, whilst meeting newly imposed emission standards and the US clean air legislation," Felix said.

"Discussions are focusing on a US, Chinese and/or Australian electricity generator participating in the UCC development program.

"WorleyParsons are also well advanced in a study on the optimisation of the UCC production process and the scale-up to a commercial-scale UCC fuel plant."

Expansion and upgrading of the UCC pilot plant is well underway and recommissioning is scheduled to commence in March.