record coal production and sales

COAL OPERATIONS
Record Production and Sales Tonnages for the 6 months to January 2008
Coal produced and sold from New Hope Corporation’s Queensland operations for the 6
months to January 2008 was at record levels, due to increased production and sales from
the New Acland mine during the period. Production for the 6 months of 2.166 million
tonnes was 21% higher than the 6 months to January 2007, while sales of 2.301 million
tonnes for the current half year were 20% higher than the previous corresponding period.
Group quarterly production and sales was also significantly higher in the 3 months to
January 2008 compared with the 3 months to 31 January 2007. New Acland’s quarterly
production was 59% up on the previous corresponding period last year, with sales from the
mine increasing by 56% compared with the corresponding quarter last year. While total
production from the West Moreton operations was lower than the corresponding quarter
last year, due to the closure of the Jeebropilly mine in early 2007, production at New
Oakleigh was similar to last year.
Total coal sold in the 3 months to January 2008 of 1.222 million tonnes was a new
quarterly record and 27% higher than the previous corresponding period. New Hope
exported approximately 880,000 tonnes through the Queensland Bulk Handling (QBH)
facility at the Port of Brisbane during the quarter. QBH continued to operate as a
predominately despatch port during the period.
New Hope Corporation Limited
Quarterly Activities Report – 31 January 2008
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EXPLORATION
Exploration activities during the last 3 months have continued on the Darling Downs EPC’s
and in Central Queensland. Heavy rain interrupted exploration activity in mid December
2007 in Central Queensland and drilling equipment was moved to the Darling Downs
EPC’s and to drilling activities around Acland.
New Saraji Project
The New Saraji Project is held by New Hope under EPC 837, and lies directly to the east
of the BMA Saraji Open Cut Mine which supplies premium hard coking coal to the
international coal markets.
New Hope’s exploration activities to date have identified a significant inferred metallurgical
coal resource of the Moranbah Coal measures with a JORC compliant inferred insitu
resource of 678 million tonnes.
A mining lease application for New Saraji was made to the Queensland Government on
the 13th October 2007 and which commences the statutory process including a voluntary
Environmental Impact Statement. The process is expected to take approximately 2 years.
Four drilling rigs were employed on the New Saraji Project during the quarter. A total of
5,934 metres of open hole and 1,056 metres of conventional and wireline coring was
completed. Exploration progress during the quarter was hindered by intermittent to heavy
rain and poor serviceability of some of the drilling rigs employed on the project.
In addition to the 2 drill rigs that New Hope owns and operates, a new larger drill rig has
been ordered to assist at the New Saraji Project. It is due for delivery in April 2008.
An acoustic scanner tool has been purchased and is under going commissioning. It will be
installed in one of the New Hope’s 2 geophysical wireline logging trucks.
New Hope has appointed an experienced “in house” project team to manage the
numerous engineering assessments which are now underway. The coal seams identified
to date present a rare opportunity to establish a significant underground complex, utilizing
multi-seam longwall operations. The thick seam opportunities present an added
advantage, with longwall technology improving, to allow for increased resource recovery
either through conventional techniques or the longwall Top Coal Caving process.
The New Saraji Project is in very close proximity to the services required to support the
operation. Rail, water and power infrastructure are located within the MLA area and
discussions with the controlling government departments have commenced to ensure
these services are available to meet the projects demands. Mine operations could
commence in about 2012 subject to the delivery of rail and port infrastructure.