The haul road will allow the Hunter Valley mine to start exports in the June 2010 quarter, and Centennial is in the final design phase to make modifications to the coal handling plant.
Producing 4.9 million run-of-mine tonnes last financial year, Mandalong has received longwall equipment transferred over from the Newstan colliery (Awaba East) which has been placed on care and maintenance.
But Centennial has plans for the area with its Newstan Lochiel project, aiming for 4Mt per annum ROM production.
The brownfield expansion is targeting a large thermal and semi-soft coking coal resource. The first drilling program of 26 holes is half complete.
A prefeasibility study for the project is due in the March quarter.
Construction is continuing at Centennial’s Airly mine in the Western Coalfield, with production to kick off next year.
Work on the rail loop, surface coal handling system and substation began in March.
Mining equipment has already been ordered for the upcoming continuous miner operation, which is targeting 1.8Mtpa with exports to go through the Port Kembla Coal Terminal.
While the nearby Angus Place operation was set back by longwall commissioning issues earlier in the year, production reached 372,000 tonnes in June and 410,000t in July.
Centennial expects Angus Place to reach 3.3Mt of ROM production for the current financial year.
Drilling is continuing to the east of the mine, which has 254.9Mt of thermal coal resources.
The Springvale longwall and open cut operation is expected to reach 3.3Mtpa of ROM coal output for the current financial year, while the Clarence continuous miner operation to the south will take delivery of a Joy flexible conveyor train in January.
Centennial expects improved productivity when the machine starts up in March and is used in full production from May.
The company aims to beat its annual record production of 1.94Mt last financial year to 2Mt for 2009-2010.
Looking at demand, Centennial said in its UK/US Roadshow presentation that it had received significant enquiries from China.
Although it received about 61% of its revenue from the domestic market last financial year, Centennial said there was continuing strong demand for coal via Port Kembla and export customers were focusing on the security of supply and reliable counter parties.
Shares in Centennial are closed up 3.7% yesterday to $3.37.
