The Coal Mining Engineering Branch of the New South Wales (NSW) Department of Mineral Resources, in its continuing effort to improve coal recovery from underground coal mining operations, has undertaken a study of the mechanics of sub-surface deformation caused by caving of the extracted area behind retreating longwall faces. The strata movement was monitored by a multi-wire borehole instrumentation system consisting of mechanical anchors installed at different horizons in a borehole extending from the surface to the coal seam. The mechanical anchors were connected to the suspended weights on the surface by stainless steel multi-strand wires. The movement of these weights was monitored as the longwall face approached and retreated past the borehole. The anchors started subsiding as soon as the face retreated past the borehole and continued to subside until the subsidence levelled off when the face retreated 900 m past the borehole. The zone of major caving and bed separation extended to roughly 10 to 13 times the extracted seam thickness and high tensile strains developed inthis zone. The bulking factor of broken strata was less than 1.14 which indicated that the roof layers collapsed in big blocks. The goaf compaction was almost complete when the face retreat was 200 m. Low tensile strains prevailed in the strata overlying the zone of caving and bed separation.