The benchmark Newcastle thermal coal price peaked at $US412 a tonne, a 215 per cent increase on the same time last year.

Its cash and equivalents at the end of the quarter were $1.8 billion.

The period also saw the company finally earn the last of its regulatory approvals for the New Acland coal mine, after dispute with local landowners, activists and the Government that had raged for more than a decade.

The result for the quarter highlights the dilemma for the State Government and its plans to reap some of the benefit from the extraordinary coal prices through increased royalties.

Tensions between the Government and the sector boiled over yesterday when the Government boycotted the mining sector’s annual forum and lunch after the Queensland Resources Council launched an advertising campaign against the royalties hike.

Significantly, most of the coal from the newly revived Acland won’t be subject to royalties because much of the title for the land pre-dates World War 1 era laws which gave the ownership of coal to the state rather than the landowner. However, the company owns other producing assets that do pay royalties.

“Security of supply was a key focus for buyers during the quarter, delivering robust demand,” New Hope told investors.

“Disruptive weather played a key role in limiting any supply side response which highlighted further the demand and supply imbalance within the seaborne coal market.”

New Hope said the market had been quieter in October as the northern hemisphere was well stocked and the move into winter had so far been mild.

“As temperatures in the northern hemisphere fall and coal burn increases, restocking will occur and it is expected to provide further strength to pricing,” New Hope said.

“Trade flows continue to support high prices for high quality, low emission thermal coal.”

New Hope said its plans for the restart of mining at Acland were progressing and it had received more than 1000 expressions of interest for jobs at the project.