Whitehaven was granted the mining lease yesterday, allowing full development of an opencut mine, located 28km north of Gunnedah in the Gunnedah Basin.

Whitehaven predicted the mine would produce 1.5 million tonnes of thermal and metallurgical coal per annum, with first coal railed in the fourth quarter of 2008.

Construction will commence this month with a local road upgrade and the development of a 6.2km private coal haulage and access road, site facilities and workshop, coal handling and preparation plant, and a box cut and ramp to access the coal seam.

Around 50 people will be employed during production with 30 to 40 contractors employed during construction.