Thiess will co-manage with Hancock the technical facets and consultants to complete a prefeasibility study, in anticipation of mining more than 1 billion tonnes of coal over a 30-year-plus period – approximately 30 million tonnes per annum at full capacity.

The development has already been given “significant project” status by the Queensland government.

“If the feasibility work demonstrates viability, and we believe it will, construction should commence in 2010 with the first coal mined in 2012,” Thiess managing director David Saxelby said.

Hancock chairman and director Gina Rinehart said Thiess was chosen for its local Queensland experience and world-class capability.

“We are looking forward to what will be a long-term venture with Thiess on this and perhaps other ventures,” she said.

The Alpha Coal Project has JORC-compliant reserves estimated at more than 3.4 billion tonnes. The mine would supply mostly thermal coal to the Asian and Indian markets.