The proposal would also allow for the future development of the Red Hill underground mine, located to the east of the Gonnyella complex.

A spokeswoman for BHP BIliton told ILN the proposal would provide future growth options for the company.

“BMA is undertaking an environmental impact statement process for the Red Hill mining lease project,” she said.

“Approval of this project will enable and sustain mining activities within the Goonyella Riverside and Broadmeadow mine complex.”

Queensland Planning Minister Jeff Seeney said if approved, the project was expected to create 2000 construction jobs and 1500 operational jobs.

“This proposed project has great economic potential for Queensland and I welcome the next stage in the proposal’s thorough assessment,” he said.

“At full production the expansion has the potential to produce an additional 14 million tonnes of high-quality hard coking coal a year, over the mine’s 20 to 25-year life.”

The community is encouraged to have a say on the draft terms of reference for the proposal’s EIS, Seeney said.

After the public comment period, the coordinator-general would thoroughly review the draft terms of reference and release the final terms for the proponent to address in the EIS.

Seeney said the EIS would cover commonwealth matters of national environmental significance as well as state matters, following the bilateral assessment process.

The project was declared a coordinated project requiring an EIS by Coordinator-General Barry Broe on 17 June.

The conversion of the Red Hill Mining Lease is of strategic importance to the planning and development of existing operations within and around the existing GRB complex, according to BMA.

It anticipates that development for future mining of panels 14, 15 and 16 associated with the BRM to start in the 2016 financial year.

The mining of these extensions will utilise the existing infrastructure and workforce, and extend the life of mine by approximately one year.

The timing for commencement, the rate of development and scale of future production on the Red Hill Mining Lease has not been determined and is subject to BMA’s internal approvals.

At full production, the Red Hill mine has the potential to produce up to 14 million tonnes per annum of high-quality hard coking coal over a life of 20–25 years.

Under this scenario, the potential capacity of the extended complex would be up to approximately 32Mtpa.