Located 40 kilometres north-east of Mudgee in New South Wales, the open-cut mine will supply to Macquarie Generation for its Bayswater and Liddell stations. The first five years of the supply contract was set at a fixed price.
About 20% of production was earmarked for export.
The mine has reserves of 170 million tonnes, over a 43 square kilometre area. It is expected the mine will become operational within the next five years.