Targeting 30 million tonnes per annum run-of-mine production, the future open cut operation will be linked by significant rail development to the proposed Wiggins Island Export Coal Terminal, due to start shipping in 2014.

“The Wandoan coal project is an important part of Xstrata Coal’s organic growth strategy with the potential to deliver transformational volume growth,” Xstrata Coal chief executive Peter Freyberg said.

“Together with proposed rail and port developments, the project would open up the Surat Basin as an internationally competitive coal export region, creating jobs and opportunities for Queensland.”

Wandoan coal project executive general manager Stephen Bridger commented on the conditions of the state environmental approval.

“Many of the conditions in the report are measures proposed by Xstrata Coal to mitigate potential impacts of the project and further Xstrata Coal’s ongoing commitment to social, environmental and economic sustainability within the Wandoan region,” he said.

With the state approval in, the federal environmental approval process can be finalised.

Xstrata is seeking to proceed with the final stage of the mining lease application.

Back in June the Swiss diversified miner put the giant Wandoan thermal coal project on hold over its concerns with the federal government’s Resources Super-Profits Tax.

But Xstrata resurrected the project in July, after the tax was scrapped and replaced with the milder Minerals Resource Rent Tax proposal.

Xstrata, along with BHP Billiton and Rio Tinto, brokered the MRRT agreement with the federal government within two weeks of Prime Minister Julia Gillard muscling out Kevin Rudd for the top job.

Green opposition

The Gillard minority government is underpinned by what could prove to be a shaky alliance with the Greens party.

Greens leader Bob Brown has attacked both state and federal Labor governments for approving “money-spinning projects” without understanding all the health and environmental impacts, the Sydney Morning Herald reported.

Speaking in Brisbane yesterday, Brown reportedly said the Wandoan project would increase Australia’s gas emissions by 9%.

He also said the growing number of Australian coal mines threatened 63,000 jobs which relied on a “healthy Great Barrier Reef”

Last week the Queensland government also gave environmental approval of the 30-year Australia Pacific LNG project.

The Origin Energy and ConocoPhillips joint venture aims to build a liquefied natural gas facility on Curtis Island along with a 450-kilometre pipeline. This project also needs federal environmental approval.