Indonesia's Bayan Resources has lifted the force majeure at its Wahana coal mine in Indonesia.
The renewed output could help drive up the benchmark Australian thermal coal price to $90 a ton.
Bayan Resources president director Eddie Chin said that, although the centre pit is still flooded, water levels have subsided allowing extraction activities at the east and west developments, reports Reuters.
The company has also cut its coal production forecast for 2010 to 13-13.5 million tons from a previous target of 13.8-15.1 million tons because rains hampered mining and shipments.
In July Bayan declared force majeure on production at PT Wahana Baratama Mining in South Kalimantan province due to prolonged rains that halted output for several days.