East Energy said the approval from the Queensland government Department of Transport would enable the company to study the use of the existing disused rail easement between Blackall and Jericho for the possible construction of a new rail line.

The government has granted East Energy a 12 month access permit to assess if the easement is suitable for construction of a new rail line.

The government easement represents the shortest route from Blackall to Jericho, which lies on the main central western railway line from Longreach to Blackwater.

Jericho is located on the south western edge of the Galilee Basin, where companies including Waratah Coal, Vale and Adani have proposed rail infrastructure that would link mines to export terminals on the East coast.

East Energy managing director Mark Basso said accessing infrastructure was vital to the success of its Blackall project.

“As with all new coal projects, access to transport infrastructure is a key issue, and we believe that East Energy is well positioned to leverage the major rail projects being proposed for the Galilee Basin in order to achieve our ultimate goal of successfully exporting thermal coal from Blackall to Abbot Point,” he said.

To date, East Energy has lodged an expression of interest with Hancock Infrastructure for access to its proposed 495km rail line to Abbot Point

East Energy has drilled more than 350 holes at Blackall, which has a two billion tonne exploration target.

East Energy predicts Blackall will be a thermal coal open cut mine which could have a 15-20 million tonne per annum production target with a 30-year mine life.

The coal rich area of the Eromanga Basin is only 200km away from the upcoming Galilee Basin.

International Coal and NSL Consolidated are among the other coal exploration companies with interests in the prospective basin.