“We are on target to commence mining coal at Oaklands within 2013 and have every confidence we can secure offtake agreements for the final Oaklands product slate, supported by market expectations of firmer coal prices in 2010 onwards,” chairman Wayne Mitchell said.

Since listing Coalworks has increased its JORC resource at the southern NSW project threefold to 822 million tonnes, made up of 121Mt measured, 572Mt indicated and 129Mt inferred.

Mitchell said the project’s “robust coal product slate” would help strengthen its economic model, investigating options for clean coal processing to produce liquids and building a clean coal power plant.

The company is evaluating a coal-to-liquids option at mine mouth to produce liquids such as gasoline or methanol to widen its market and achieve higher profitability.

It is also seeking approval from the NSW government for an onsite or nearby power plant using clean coal technologies.

Mitchell said the company was in talks for long-term offtake agreements with India.