The first delivery of coal has arrived at Mt Piper power station as part of a plan to rebuild stockpiles in the lead up to summer.
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The plant, owned by EnergyAustralia, has been in a "coal conservation mode" since September due to low coal supplies, which scaled back its energy production.
The coal shortages were tied to problems with quality and volumes at the nearby Springvale mine, which is the power station's sole source of supply. .
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Earlier this month EnergyAustralia and Springvale's owner Centennial completed a two-month project so that the mine's Lidsdale siding facility, which would normally dispatch coal, can also receive supply by rail. Mt Piper recently received its first delivery of coal from outside the immediate region.
"We've had a lot of people working very hard doing maintenance so the plant is ready for summer and establishing a rail link that opens up new coal supplies," Head of Mt Piper Greg McIntyre said.
"The rail link is a lifeline, lifting the immediate shortages in time for us to get up and running as electricity demand in New South Wales peaks with the warmer weather.
"The project has been a big team effort. Thanks go to our people at Mt Piper, Centennial Coal, Lithgow City Council and the local community for their ongoing support and patience while this work was done."
Mt Piper will be ready to run at full capacity from the end of November, Mr McIntyre said.
The plant has used its downtime to do major maintenance works.
The new rail unloader at Springvale receives coal from the Airly mine at Capertee, 30km to the north of Mt Piper. From there, coal is transferred to Mt Piper via the existing conveyor system.
Centennial's Deputy CEO Peter Parry said the company had traditionally dispatched coal for export from the Lidsdale siding facility at Wallerawang.
"In the past two months we have made the necessary changes so the site can receive coal by rail," he said.
"We're also very pleased with the huge efforts of our Springvale employees in successfully completing a very difficult long wall relocation, enabling production and coal supplies to Mt Piper to recommence."
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