The mine will be located in the upper Hunter Valley in New South Wales, 20km west of Muswellbrook.

Anvil Hill Project manager Roland Lee said Centennial had started talking with government agencies so an environmental impact statement (EIS) could be prepared, along with other development applications, by the end of 2005.

Centennial are keen to seek timely development approval for the project in order to meet a supply contract with Macquarie Generation announced October 2004. The domestic supply contract covers 30Mt over 12 years.

The remainder of the output has been flagged for export, with Centennial keen to capitalise on lucrative export prices.

Centennial will seek development approval for 21 years to cover construction and operation of the opencut, a coal handling and preparation plant, stockpiles, maintenance and administration buildings, and a rail loop.

All coal will be transported by rail from a loading facility 8km north of Denman.

Centennial has appointed Umwelt Australia to prepare the EIS, and Coakes Consulting will undertake the social impact assessment and community consultation program.