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Market:ASX / AIM
Sector:Coal
EPIC:CCD
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Caledon Resources

Caledon Resources (ASX: CCD, LON: CDN) is a coking coal producer and explorer in the Bowen Basin of Queensland, Australia. It acquired the mothballed Cook Mine in late 2006 and has since recommissioned the operation and introduced an innovative new underground mining methodology.

 

The Company also purchased the nearby Minyango exploration concessions in 2006 and has conducted a number of drilling programs in preparation for a feasibility study.

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Caledon reports 18 percent growth in raw coal production despite flood problems

Wednesday, May 04, 2011
The average coking coal price achieved during the quarter was US$214/t and this is forecast to rise to US$258/t in the second quarter The average coking coal price achieved during the quarter was US$214/t and this is forecast to rise to US$258/t in the second quarter

Caledon Resources (LON:CDN, ASX:CCD) produced 179,000 tonnes of raw coal from its Cook mine in Australia in the quarter to 31 March 2011 compared to 151,000 tonnes in the previous year.

The 18 percent increase comes despite flood related road closures in January, which prevented employees getting to the mine, said Caledon.

In it's Q1 report, the firm said: "Fortunately there was minimal structural damage resulting from the floods and the mine progressively returned to normal operations during the second half of the month."

The company produced 50 percent more thermal coal in the quarter than the March quarter in 2010 and it sold 21 percent more coking coal in this year's period - compared to 2010.

But the company sold 18 percent less thermal coal in the period - at just 14,000 tonnes (17,000 tonnes).

The average coking coal price achieved during the quarter was US$214/t and this is forecast to rise to US$258/t in the second quarter.

But the strengthening A$ to US$ exchange rate, which has gone from a quarter 1 average of 1.01  to 1.09 will now absorb a significant portion of this increase in Australian dollar terms, said Caledon.

Caledon is a coking coal producer and explorer in Queensland, Australia. It acquired the mothballed Cook Mine in late 2006 and has since recommissioned the operation and introduced a new underground mining methodology.

The company also purchased the nearby Minyango exploration concessions in 2006 and has undertaken a number of drilling programs in preparation for a feasibility study.

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