Lemington coal mine is operating in an environmentally sensitive area in the Hunter Valley, NSW, Australia. Late in 1999 the southern pit was developed using a series of box cut blasts. After the initial development the area would have been free dug due to the soft, well-jointed nature of the deposit. However, it was decided to trial drill and blast to determine if shovel productivity could be improved to enable an overall mining cost reduction. The initial trial blast results were less than satisfactory with both environmental issues occurring and the desired shovel productivity not being achieved. An audit of the blasts indicated that wet ground and the presence of soft clay inter-bedded with harder rock caused the poor blast results. Also, water-affected explosive product combined with explosive energy loss into soft ground led to flat spots and tight digging in the hard band areas, resulting in the lower dig rates. Lemington Mine and Orica Explosives developed a plan to match the rock with the appropriate explosive type and energy. This resulted in a number of blasts over a six-month period using a new non fuming explosive product, Novalite'. The results have been excellent with the environmental issues being totally resolved and dig rates improved, enabling reductions in mining costs. This has allowed the mine to continue with their exemplary record of environmental management whilst achieving operational efficiencies.