In his recommendations to Xstrata for the Mt Owen expansion, the director-general also asks that the company provide details of its relationship with Vale’s nearby Integra underground mine.

Xstrata must provide justification for the proposed mine plan, including alternatives considered, efficiency of resource recovery, mine safety and environmental protection.

“The environmental impact statement must include a detailed description of the development, including consideration of opportunities for integration between the development and Xstrata’s existing, approved and proposed mining operations in the region and interactions with other mines, including the Integra underground mine,” the director-general said in his recommendations.

Xstrata is applying for the consolidation of the existing development consents for the Mount Owen and Ravensworth East coal mines as part of the its Mount Owen Continued Operations project.

This includes: an extension to the existing North Pit open cut mining area to recover an additional 60Mt of run-of-mine coal over a period of 21 years; an increase in capacity of the Mount Owen coal handling and processing plant (CHPP) and rail loading facility from 15-17Mtpa of ROM coal; and construction and operation of a second rail line near the existing the Mount Owen rail spur with a northern turnout spur onto the Main Northern Railway.

Xstrata intends to transport up to 2Mtpa of ROM coal and crushed gravel to the Liddell and Bayswater power stations, Liddell CHPP and Ravensworth Coal Terminal via the existing conveyor system and increasing the maximum overburden height at Mount Owen by 10m to 240m.

The Mt Owen complex consists of the Mt Owen, Ravensworth East and Glendell open cut coal mines. Thiess operates Mt Owen Mine (excluding the coal handling and preparation plant, and associated infrastructure) under a contracting agreement with Xstrata Mt Owen.

The integration of these adjacent Xstrata owned operations enables all sites to utilise existing infrastructure and coal handling facilities at Mt Owen mine, according to Xstrata.