Continental flags increasing exports

Perth-based Continental Coal says exports of thermal coal from its Ferreira mine in South Africa are set to increase over the March quarter.

Continental said it was on track to exceed budgeted export sales of 120,000 tonnes and to meet targeted sales of 141,000 tonnes for the quarter.

The miner said in a market update that exports rose by 50 per cent to 48,532 tonnes in February, up from 31,875 tonnes in November 2010.

The company realised an average net sales price of US$118 per tonne during the March quarter to date, on sales of 88,980 tonnes.

Chief executive Don Turvey said export sales had increased at a time of rising coal prices and while heavy rains and derailments were materially impacting other export coal producers.

"It is pleasing to see that the tough decisions made at Ferreira in the last quarter are already beginning to have results," Mr Turvey said in a statement

"The outlook for the balance of the quarter is positive and we anticipate that we will meet our targeted sales of 141,000 tonnes."

At close of trade today, shares in Continental were steady at 6.1 cents.