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M Mining produced its first metallurgical coal from the Mavis Downs pit in Central Queensland over the weekend as prices for the commodity soared to new heights.

A joint venture of M Resources and Stanmore Resources (MetRes) acquired the mothballed Mavis Downs and Millennium site from Peabody Energy in July, with M Mining acting as joint venture manager and operator of the restarted mining activities.

“Since commencing operations in August with an innovative mine restart plan, this has been an important early production milestone for us,” M Mining owner and director Matt Latimore said.

“Achieving first coal so quickly is the result of a fantastic effort from our partners, suppliers, managers and workforce.”

First coal came the day after a new historic high of $US380/tonne for Australian hard coking coal.

The new owners of the Mavis Downs and Millennium site near Moranbah enlisted Coal Augering Services to kick off mining with auger production, to be followed by open-cut mining by the end of the year and underground mining in 2022.

Late last month M Mining awarded a $425 million contract to PIMS Group to provide the underground mining services.

The five-year contract is expected to spark up to 100 mine construction jobs and more than 125 direct full-­time mining jobs for the region.

“In the nine weeks since completion of the sale of Millennium mine, M Mining has established a strong operating team and issued $464 million in contracts for auger, auger support, open cut and underground,” Mr Latimore said

“Our work is underwriting the future growth of this operation, economic activity and local employment opportunities.

“Since announcing the acquisition of Millennium in April we have said that this will be a low-capital, fast-to-market asset, producing high-quality coal.”

Mr Latimore said the next key milestone for M Mining would be open-cut mining at Millennium by November this year.