Shenhua’s first major overseas development is targeting 10 million tonnes per annum of thermal coal production for at least 21 years.

The open cut project has copped some negative attention in recent months and Shenhua decided to address concerns by hosting an onsite media briefing yesterday.

Shenhua holds no plans to mine under the Namoi River and is undertaking a Namoi Water Study to support its EA work.

Eight water monitoring bores are planned to get a better understanding of the underground aquifer system while existing water bores are monitoring water flow.

More than 10 surface water monitors and 10 dust monitors are installed both inside and outside the project area.

The initial findings of the feasibility study suggest the unannounced resources can be mined in a series of open cut pit shells which account for just 18% of the project area.

Shenhua noted the pit shells will mainly be located behind topographic barriers with maximum pit depths of around 130m.

Mining will use shovel and truck methods along with surface miners to target thin seams.

Importantly, Shenhua said sufficient coal was delineated to meet its project requirements and the indicative quality was suitable as well.

So far more than 465 holes have been drilled for 32 kilometres while phase three exploration will start in August.

The leading coal producer has snapped up 12,100 hectares of the project area through its ongoing property acquisition program.

The feasibility study will investigate typical project parameters including the construction of a coal handling and processing plant and coal transportation options.

But Shenhua also seeks to support an application for port capacity of 190Mt over at least a 21-year period.

The study will help generate data for a reserve statement in September.

The major Chinese coal producer plans to investigate longwall mining once the open cut is up and running.

Shenhua’s first major international project is targeting 500 million tonnes of inferred resources.

The Watermark project stretches for 195 square kilometres and is only 35km from Gunnedah.

The company paid $A299.9 million to the NSW government in 2008 for the five-year Watermark exploration licence.

An initial exploration program by the state’s Department of Primary Industries is the only previous work done in the area.