Soaring coal prices are the main driver behind the government’s move to open the area for exploration. The basin covers over 350sq.km and is believed to host around 500 million tonnes of export-quality thermal coal.

The successful applicant will be awarded coal exploration rights over the area, about 260km from the port of Newcastle, initially for five years.

At present there is insufficient infrastructure and rail capacity to transport coal to the nearest port, so applicants will need to consider infrastructure requirements as part of their expressions-of-interest.

The move has raised concerns from members of the local community worried mining may have an impact on the local black soil plains and underground water reserves.