The company said a scoping study confirmed project potential was profitable and it would bring major economic gains to the local community and to Victoria.

In its quarterly report Mantle said the project would require upfront capital of $2 billion and would create up to 1300 construction and 490 permanent local jobs.

It has a scope of 20 million tonnes per annum of product coal and mine life of more than 25 years.

“A joint venture partner is currently engaged in capital raising to support development of the $70 million pre-commercial demonstration facility, to be located in the Latrobe Valley,” the company said.

Mantle said negotiations over its Trafford Coal project landholder access agreement were ongoing and the Latrobe Valley coal project desktop studies were continuing.