Located 16 kilometres west of the Rolleston town and 270km west of Gladstone, the thermal coal mine started operation in 2005 and its typical production is about 7.5Mtpa.
However, the mine was significantly setback by the recent wet season and its 110km rail link to the Blackwater line was only restored by the second week of March.
The Rolleston Coal Expansion Project aims to mine the coal reserves in the areas of two adjacent mining lease applications which cover a total of 8895 hectares.
Xstrata said the RCEP would consist of between five and 10 open cut pits, which would either be extensions to existing pits or adjacent to the existing Rolleston mine.
The expansion work is expected to lift production from 7.5Mtpa to about 14Mtpa in the existing mining lease alone.
“When the expansion areas are fully operational the combined tonnages from Rolleston coal operation and the Rolleston expansion areas is expected to be in the range of 15-20 million tonnes per annum,” Xstrata said.
“Some upgrades will be required to the existing Rolleston mine infrastructure, for example to power sources and rail access.”
The mining method will use draglines to remove overburden, with support from excavators, shovels and trucks.
The extracted coal will be crushed, sized and blended onsite for delivery to domestic customers and export via Gladstone’s port.
Xstrata aims to start mining in the expansion areas by 2015, subject to gaining the necessary approvals.
The total mine life is expected to exceed 30 years.
Xstrata plans to start the environmental impact statement process to gain state government approval during 2011 and 2012 and aims to receive the two new mining leases in early to mid 2013.
The main environmental challenge identified was the possibility of sedimentation and pollution impacts to the Fitzroy River catchment, which flows into the Great Barrier Reef Marine Park.
But Xstrata views that it is unlikely that any sedimentation or pollution of waterways caused by the expanded mine will cause any significant impacts.
The company plans to conduct water discharges in accordance with state requirements plus implement an environmental monitoring program.
The federal application was made to meet the requirements of the Environment Protection and Biodiversity Conservation Act.
