But the NSW Department of Planning and Infrastructure is yet to finalise its assessment of the project’s stage 2 development, which is made up of the open cut 4, underground 1 and underground 2 mines.

“Once the department has completed its assessment, the project will be referred to the Planning Assessment Commission for approval,” the company said.

“The timing for the final PAC approval remains uncertain.

“Work continues on the design phase of the project while the relevant approvals are being sought.”

Operations at the existing open cut mine performed strongly during the December quarter with run of mine production of 1.5 million tonnes and saleable production of 1.2Mt for the period.

Coal mining ceased in the middle of December as ROM output reached approval levels for the year (7.17Mt ROM coal) and overburden mining ceased for a two-week break over the Christmas period.

The mine had minimal stock levels at the end of the year.

Product yield has been much higher than budgeted for the quarter and year, following improvements to the coal handling and preparation plant control limits for density, a better understanding of the coal quality in the resource and the ash-yield curve studies.

Yancoal said the safety performance of the Moolarben mine since it began production had also been positive.