The proposed longwall mine would have a total capital estimated cost of $500 million – excluding the coal preparation plant – for the first 10 years.
The draft underground mine plans are laid out in five target seams with two final product transport corridors under detailed review.
“Economic modelling indicates financially robust project in excess of 20% IRR,” the company said in its presentation.
“It is a good quality resource – 0.525 billion tonnes and located near major infrastructure.”
Sufficient land was owned for all necessary infrastructure and access requirements and preâ€Âfeasibility and environmental studies were well advanced, it said.
The Doyles Creek project is estimated to produce 5 million tonnes per annum.
It will also house the first coal-centric underground mine training school to address the skills shortage in the underground sector.
In recent months the project has encountered obstacles, including facing the New South Wales Land and Environment Court after a blind farmer refused to allow NuCoal access to his land for Doyles Creek drilling.
In early December the company decided not to drill on the land owned by Ian and Robyn Moore, despite being granted access to the land by the court.
The company had successfully negotiated land access agreements with 26 local landowners situated in the exploration area.
Meanwhile, the Doyles Creek project is under an inquiry by the Independent Commission Against Corruption, following the awarding of the exploration licence in 2008 by former Labor minister Ian Macdonald.
Current mines minister Chris Hartcher referred the matter to the NSW watchdog after an independent report by Clayton Utz said there was “a circumstantial case of wrongdoing and breach of public trust” in the allocation of the EL and recommended a special commission of inquiry.
