According to Reuters Shenhua board secretary Huang Qing told Chinese newspaper Shanghai Securities News the company would not buy other projects if it does not succeed at Watermark, the first of its overseas efforts.
CSE subsidiary Shenhua Watermark Coal recently inked a contract with Every Day Mining Services subsidiary GOS Drilling for six surface rigs with the first three to start this week.
Watermark project director Joe Clayton has previously told International Longwall News the drilling will underpin a full mine feasibility study and the biggest challenge would be to gain NSW Department of Planning approval for the environmental assessment.
Last year, CSE paid $A299.9 million to the NSW government for the five-year Watermark exploration licence, which covers 190 square kilometres.
An initial exploration program by the NSW Department of Primary Industries is the only previous work done in the area.
CSE hopes Watermark will host more than 1 billion tonnes of shallow thermal coal resources of domestic and export quality.
