Following its agreement with the Queensland utility company, Wesfarmers will gain access to 46 million tonnes in the Curragh North mining area.

Wesfarmers now plans to expand the mine’s capacity from 6.5-7.0 million tonnes per annum to 8.5Mtpa from late 2011.

As part of the deal, Wesfarmers said Stanwell would benefit through a new export-rebate formula linked to Curragh metallurgical coal sales above 7Mtpa.

A new coal handling and preparation plant will be built as part of the $286 million capex for mine infrastructure.

“This expansion will further lift the long-term prospects for Curragh and ensure that we can take advantage of the forecast increase in seaborne metallurgical coal demand,” Wesfarmers Resources managing director Stewart Butel said.

“It will provide additional employment at the mine both during the construction phase and in the longer term.”

Wesfarmers has already contracted rail and port capacity for the ramp-up and has been granted necessary approvals to start up the expansion works.

Curragh’s production in the September quarter was 3% lower than the previous quarter at 2.3Mt.