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The mine – which uses longwall top coal caving techniques – is targeting production from the stage three development this quarter.

The mine has completed mains and gate road development, sunk the Kitchener shaft and services shaft, and developed the underground coal bin as part of the program.

The company is targeting 1.5 million tonnes to 1.7Mt this year with a target free-on-board cash cost (including royalties) in the range of $105 per tonne to $110/t.

Development in the stage three area remains behind schedule and may cause a short delay in the start-up of the longwall in the first panel. As a result, production from the mine in that time may be lower than usual.

However, by moving to a seven-day shift mining schedule, it may be possible to make up the shortfall by the end of the year, according to Yancoal.

“The mine is about to introduce the ‘LEAN’ process following the success of the process at the Abel Underground Mine at Donaldson,” the company said.

“It is anticipated that underground development rates should improve over 2013 as the process is fully integrated into the mine.”

A ground magnetometer survey was conducted over a section of the stage three area during November. Its aim was to pinpoint the location of a dyke in the area so that appropriate steps could be taken in development and with the longwall when mining through the impacted panels.

The Kitchener shaft was also successfully holed from underground during the December quarter.

The project, when complete, will significantly improve the ventilation in the stage three area of the mine, a critical element for the Austar Mine’s long-term future, the company said.

Raise-boring of the 1500t underground bin, which is also an important element of the new mining area, started in December.

The mine achieved a new record for gate road development during October when 1352m were advanced in the month.