Coal & Allied Production Report for the quarter ended 31 March 2009

Location: Brisbane, Australia

Production

Coal & Allied's share of saleable coal production for the quarter was 4.2mt, 11 per cent lower than the December quarter in 2008, and nine per cent lower than the corresponding quarter last year.

During the quarter, production was adversely impacted by wet weather conditions. Bengalla's coal production was 20 per cent lower than the preceding quarter, due to the weather impact as well as coal seam sequencing. Mount Thorley Warkworth's production was 27 per cent down on the December quarter, largely impacted by coal seam presentation, truck availability and wet weather. Strong production and coal sales in the fourth quarter of 2008 resulted in all operations starting 2009 with low levels of in-pit coal inventories. Low opening in-pit inventories exacerbated the impact of wet weather in the first quarter of 2009.

Coal & Allied conducted an organisational review during the first quarter of 2009 and one outcome was a decision to shut the Mount Thorley Warkworth North coal preparation plant on a temporary basis. This shutdown is planned to last six weeks and is not expected to adversely affect Coal & Allied's production levels in 2009.

Sales

Coal & Allied's share of coal sales in the first quarter was 16 per cent lower than the previous quarter and is in line with production.

Despite the lower production in the first quarter of 2009, Coal & Allied anticipates that full year 2009 export sales will be in line with port allocation, and total sales will be comparable with 2008.

Other

There was no exploration activity during the quarter. The ROM hopper relocation project at Bengalla is scheduled to commence tie in activities in mid May. This is consistent with the original project timetable.

For further information contact:

Media enquiries:
Alison Smith
(07) 3361 4223 / 0438 787 038

Investor enquiries:
Dave Skinner
03 9283 3628 / 0408 335 309

http://www.coalandallied.com.au/

Full release is in PDF format below

Coal & Allied Production Report for the quarter ended 31 March 2009 [PDF: 52 KB]