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Oil refining firm SK Corp and state-run Korea Resources Corp were awarded the exploration licence for the area, located near Emerald in Queensland’s Bowen Basin.
Korea’s Ministry of Commerce, Industry and Energy said yesterday the area contained an estimated 300 million tonnes of bituminous coal and the two companies, which have a 50% stake each in the project, would spend $US150 million on the venture.
SK Corp said it would spend KRW5.18 million ($A7 million) on the exploration stage.
Exploration has been scheduled to finish in 2009 and mine development is expected to start in 2012.
Korea relies entirely on coal imports to fuel power stations and has looked to coal mine investments in Australia, Indonesia and Russia to guarantee supply.
