The bankable feasibility study and an optimised supplementary study for the Baralaba expansion estimates the net present value of the project at $1028 million.

“The granting of the mining leases facilitates the progression of the company's financing plans, including project finance based on the supplementary bankable feasibility study,” it said.

Production at Baralaba returned to normal in the June quarter following adverse weather in the previous quarter.

Shipments also increased, with the shortfall in sales expected to be recouped during the remainder of the year, according to the company.

Baralaba produced 188,000 tonnes of ROM coal in the quarter, almost double the 99,687t produced in the March quarter.

The Baralaba mine, near the town of Baralaba in the Bowen Basin, is an open pit operation managed by the company and operated by contractors providing blasting, mining and haulage.

The company undertakes its own coal preparation services. PCI coal and thermal coal are produced from multiple seams from the Rangal coal measures.

All the coal sold is exported through the Port of Gladstone.