Writing in the March edition of Coal Trade, analyst Clyde Henderson of Energy Economics said production from the new mine will replace hard coking coal production from the German Creek Southern colliery.

“Southern is running out of economic coal reserves despite reaching agreement with MIM to extend the mine into the Oaky Creek lease,” he said.

Meanwhile, on-line Japanese news service CoalinQ.com, reported last week that the recruitment of project staff had begun.

The news service said this would be the first underground mine in Queensland since Leichhardt mine that is planning to use a bulk winder in a vertical shaft for coal removal from a mine.

“Development of Grasstrees colliery is scheduled to commence in 2001 with the sinking of two shafts to access the German Creek seam,” Henderson reported. “The first longwall coal will be produced in early 2005. Grasstrees will produce 4Mt of coking coal a year. Development of Grasstrees will extend the life of the German Creek mine until 2016.”