The company is now awaiting environmental assessment requirements which will be issued by the NSW Department of Planning, PWCS general manager Graham Davidson said.

“This is another important signal to the market that the planning process is moving us closer to delivering T4,” he said.

“PWCS must continue to work closely with government agencies at both the state and federal level to ensure consensus is reached on how the proposal can progress in the most practical and environmentally responsible manner.

“Much will depend on the planning process that we are obliged to follow.”

Last month the federal government granted major project facilitation status for T4 which is intended to enable smoother planning assessment, especially where federal input is required under the Environment Protection and Biodiversity Conservation Act.

PWCS currently has nameplate capacity of 113Mt, which will rise to 133Mt in late 2011 under an existing $670 million expansion program. The company has planning approvals in place for 145Mt.

T4 is a critical plank of the Hunter Valley’s Long-Term Commercial Framework brokered by the coal industry and the NSW government, with input from former premier Nick Greiner.

The plan was endorsed by the Australian Competition and Consumer Commission ahead of coming into effect on January 1, 2010. Underpinned by long-term contractual agreements between coal producers and PWCS, the framework positions PWCS to deliver required coal-loading infrastructure for all Hunter Valley producers.

PWCS will need to demonstrate that it can address and manage all relevant environmental matters identified by the department.

This process will play a pivotal role in determining if the Kooragang Island terminal is environmentally feasible, and what the size and layout might be.

PWCS will also be obliged to step up community consultations to ensure the local community understands the proposal.