Strict environmental controls will govern any mine development as some 900 hectares of vegetation would be lost, some of which is protected under the federal biodiversity act.

 

The projected 15Mtpa Clermont Coal project is a replacement mine for the Blair Athol operation, due to wind down in 2008-10. The proposed mine is approximately 15km east of the existing Blair Athol coal mine and is expected to cost $A440 million.

 

The Clermont Coal Joint Venture consists of Rio Tinto subsidiary Queensland Coal (50.1%), Mitsubishi Development (34.9%), and EPDC Australia (15%).

 

The JV will now seek approval from the federal minister for the environment and heritage Ian Campbell. A detailed feasibility study is underway and a final decision on whether the mine will proceed is expected later this year, pending all statutory approvals.

 

Based on an average production of 12Mtpa from proven reserves in excess of 190Mt of coal, the life of the mine would be approximately 17 years. The proposed open pit would be approximately 290m deep and up to 2km wide.

 

Construction could commence by mid-2006 and first coal production by 2009.