Power station owners Tarong Energy proposed three coal supply options to the Queensland Government - with development of the Kunioon resource in the South Burnett region identified as the most economical option and gaining the Government's support.
As part of the arrangement Tarong Energy will take control of RTCA's Tarong Mine until the new Kunioon mine is built, and acquire RTCA's Mineral Development Licence for the Kunioon resource.
The project will eventuate into an opencut mine with a 16km conveyor system transporting coal to the stations.
Other options considered were building a 71km conveyor to the stations from New Hope Corporation's New Acland Mine or developing a mine at its Glen Wilga resource and building a 150km rail line to transport the coal.
Tarong Energy chief executive Helen Gluer said the endorsement of the Kunioon mine was positive for the company and the region.
"Up to 750 jobs will be created during the construction phase of the Kunioon mine and coal conveyor across the regions and Queensland. The new mine will provide more than 500 direct and flow-on jobs," Gluer said.
Tarong Energy has lodged an Environmental Impact Statement about the project with the Queensland Environmental Protection Agency and this will be available for public comment in the near future.
The company is also in discussions with property owners affected by the conveyor.
Construction of the new mine and conveyor will begin once all approvals are obtained.
