Owned by Idemitsu Boggabri Coal, a subsidiary of Japanese company Idemitsu Kosan, the $A39 million development is expected to go into production next year.

The recoverable reserve is estimated at 100 million tonnes and includes semi-soft coking coal and low-ash, low-sulphur thermal coal.

With the environmental and operational approvals now finalised, Idemitsu Boggabri Coal will kick off open cut mining at the rate of 1.5 million tonnes per annum. Subsequent expansion is possible but depends on market conditions.

Idemitsu Kosan's share of coal production in Australia in fiscal 2004 was approximately 8.3Mt and the addition of the Boggabri mine will increase this to 12Mt by 2008.