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MELBOURNE - Xstrata Coal has started looking into the feasibility of developing a 20 million tonnes a year, open cut thermal mine in Wandoan, Queensland.
The subsidiary of UK-listed mining giant Xstrata said the mine would have an expected life of around 30 years.
"A decision to proceed with the mine development is not expected before last 2009, following the resolution of the environmental and planning assessment process and a decision by the government," Xstrata Coal chief executive Peter Coates said.
"A final commitment to proceed with the project will depend on port access at the time and the resolution of engineering studies, geological investigation, community and environmental considerations and the marketability of the product."
The Wandoan Project will be developed by Xstrata Coal Queensland, which will hold 75 per cent of the the associated joint venture, with the remaining stake split between ICRA (Itochu) Pty Ltd and Sumisho Coal Australia Pty Ltd.
"Wandoan provides a unique opportunity for Xstrata Coal to begin exploring a large and untapped thermal coal resource with ideal characteristics to be used in Integrated Gasification Combined Cycle and other low emission technologies," Mr Coates said.
In May 2007, Xstrata Coal Queensland lodged three mining lease applications, covering 32,000 hectares of land west of the town of Wandoan.
"The first stage of the Wandoan Project will include feasibility studies and the preparation of an environmental impact statement," Xstrata said.
"These studies will assist Xstrata Coal to identify and assess potential social, economic and environmental impacts and benefits on a local, regional and state basis."
- AAP
