As well as the mining application, Aquila has submitted a voluntary environmental impact statement application and an Environmental Protection and Biodiversity Conservation Act referral.

The Washpool project, located 24km northwest of Blackwater and between the active Curragh and Ensham coal mines, is a proposed open cut expected to produce 1.6-2Mtpa of clean coking coal for export over a mine life of 18 years.

Coal will initially be mined using truck and shovel mining methods with a view to progressing to a dragline.

Coal will be washed onsite before being transported to the new Wiggins Island Coal Export Terminal.

At full production the mine will employ 290 people.

Aquila said it would carry out additional exploration to further delineate the 138Mt of indicated and inferred JORC-compliant resource.

A definitive feasibility study is scheduled to be completed by the end of 2010, construction works will begin mid-2011 and first coal is expected January 2012.

Aquila was trading down 2.46% mid-morning today at $A8.73.