In March, the Queensland Land Court recommended the state government approve Xstrata Coal’s mining lease applications for its 22 million tonne per annum Wandoan coal project.

The Range, which is located 25km southeast of Wandoan and is in close proximity to the planned Surat Basin rail line, has a target of 5 million tonnes per annum of coal with saleable production starting in 2015.

The bankable feasibility study for an open cut mine with a 26-year mine life at The Range is underway, according to Stanmore.

“Surat Basin coals are typically clean burning with good burnout characteristics and low nitrogen, ash and sulphur,” the company said.

“It is suitable for all key markets including Japan, China, Korea and India.

“A recent marketing trip to Japan confirmed strong interest in product coal.

“Coal is capable of being washed to a range of ash levels from 10 per cent to 14.4 per cent.”

The average total coal thickness is 8.5m (with a maximum of 12m) and coal is near flat with dip of 1 degree to west.

The project has 94Mt JORC marketable coal reserves and a 260Mt JORC resource with 184Mt indicated and 76Mt inferred.

It has a run of mine strip ratio averaging 6.7 bank cubic metres per tonne.

Substantial quantities of clean coal result in product yield up to about 80%.

The Range would have operating costs (owner mining, ex royalty) of $A71.90 per tonne free-on-board.

“There is further potential to optimise operations and add value, for example through product optimisation, bypass configuration, increase scale, and shared infrastructure,” the company said.

“It also has the potential to further increase marketable reserves, extend the resource base and mine life.”