Lynch was a driving force behind the project. He set up Waratah back in 2006, which later caught the attention of Queensland billionaire Clive Palmer, who fully acquired Waratah through his private company Mineralogy last year.

While joint venture partner Metallurgical Corporation of China arranged 70% of the project finance in November, Palmer will now delay his plans to raise more funds by listing his private company Resourcehouse, which contains his mining interests, until March, according to the Australian.

“I would like to thank Peter for his important role leading the China First development team and wish him every success in his future endeavours,” Palmer said.

The China First project is targeting 40 million tonnes per annum from the unexploited basin with first thermal coal expected in the third quarter of 2013.

The open cut operations of the project are expected to use four draglines with prestripping to begin in 2012, while four longwalls are also planned with each producing 9Mtpa.

One of the major costs will be the development of a 495km rail system linking the operation to a new port at Abbot Point, and featuring a heavy haul 1435mm standard gauge system.

The China First operation will use two coal preparation plants with each plant boasting four 2000 tonne per hour modules for a total installed capacity of 8000tph, and 7000 hours per year of operation to make 56Mtpa capacity.

During peak construction the JV plans to house 6000 construction employees near the site and have 1500 fly-in, fly-out permanent employees.

The site will also feature a 1.8km airstrip capable of landing a jet liner.

Waratah plans to purchase six complete train sets comprising four 4500hp locomotives and 180 wagons. Each train will be capable of hauling 21,240t.

The new export facilities the company plans to build include a 2Mt stockyard, two ship berths with 10,000tph ship loaders, 8000tph outloading conveyors and capacity for 200,000t (dead weight) Capesize vessels.

At 45 years old, Lynch was formerly with MIM Holdings and general manager at Oaky Creek. Xstrata Coal acquired MIM and its mining complexes in 2003 for $A4.93 billion.

Lynch will be replaced by Waratah’s vice-president of corporate development, Phil McNamara, as Waratah CEO and Resourcehouse executive director.

“Phil has played a leading role in the senior executive team in the development of the China First project,” Palmer said.

“He has more than two decades of experience in the Australian mining industry and Resourcehouse is delighted that he will be there to help bring the China First project to fruition.”

A qualified mining engineer, McNamara was the mine manager for Austar before joining Waratah.