Bens Creek Group PLC (AIM:BEN, OTC:BENCF) said preliminary production from its new permit area had gone well since operations began at the end of October 2022.
Some 2,500 tons of run-of-mine coal was produced in a single day with a clean coal recovery of 62%.
An initial analysis is that the coal seam being mined under the new permit is approximately 50 inches, it added, which is greater than the seam on the original permitted site, which had a coal seam thickness of 38 inches.
To optimise production and reduce costs and manpower, the process plant facility has been upgraded with the addition of another dryer into the existing processing plant, said the statement.
A second shift on its existing highwall miner has also just started, which will double daily production at the site in West Virginia, while plans for a second mining machine by the end of December are on track. This will also run on two shifts, said Bens Creek.
Adam Wilson, chief executive, added: "The set up to allow us to move from a contracted fleet to an owner-operated fleet with two highwall miners is nearly completed.
“This, together with the remediation of the infrastructure (from what was a previously idle mine) and the commencement on the underground mine for the creation of a first walking super section, is nearing completion."
Exploration drilling is being planned to expand the metallurgical coal reserve base and the recoverable and mineable tons, while Bens Creek intends to apply for a third surface/highwall permit that will include approval for underground work.
“An update on resources and the issue of a new mining permit have taken place at an expedited pace over the last twelve months and we remain confident that 2023 will be a good year for Bens Creek,” Wilson said.