The opencut mine will be located near Wollar, northeast of Mudgee in NSW and is expected to produce 13 million ROM tonnes beginning January 2007.
Today’s mining lease gives site access to contractor Thiess, with construction of the project due to commence on Monday, February 13.
Thiess will construct the mine infrastructure, including a coal handling and preparation plant and train loading infrastructure, and will operate the mine for the first five years.
Construction of the project will employ about 200 people this year, with an operational workforce of about 100 people thereafter.