Central Colliery was developed to exploit large underground reserves in the German Creek lease. It was planned from the outset as a retreating longwall operation and is the first longwall mine in Queensland. Longwall mining is not new to Australia but all previous experience has been confined to the coalfields of New South Wales. There was no precedent for longwall extraction in the markedly different geological setting of the Bowen Basin in Central Queensland. Various investigations were thus carried out during the initial development of Central Colliery, prior to the installation of the longwall, to ascertain the geotechnical characteristics of the coal seam and the adjacent strata and to predict the performance of the heading and pillar design as mining proceeds to depth. Laboratory tests showed the coal to be weak with an unconfined compressive strength of 9.6 MN/m2. Site inspection and geophysical correlation revealed a shear zone and extensive intraformational shear planes in the seam. The latter were found to exert a controlling influence on rib reaction in the headings. This behaviour was predicted by finite element modelling of the development headings which indicated that mining induced stresses in the coal would be relieved by block movement of the ribs. A chain pillar width versus depth curve was established for yielding pillar design based on empirical and computational methods. This gave pillar widths from 25m to 48m over the proposed depth range of 150m to 300m. Finite element modelling of the 25m pillars chosen for the first gateroads confirmed the overall stability of the design but suggested that rib spall could be significant in the adjacent tailgate. (1) Chief Mining Engineer, Capricorn Coal Management Pty. Ltd., German Creek Mine, Queensland (2) Senior Engineering Geologist, Coal Division, The Shell Company of Australia Limited, Melbourne