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Targeting 30 million tonnes per annum run-of-mine, Xstrata has previously forecast first Wandoan exports to start as early as 2014.
The approval also covers the construction and operation of an underground water supply pipeline, raising of the existing Glebe Weir and building an associated water pipeline to transport water from the Dawson River to the proposed open cut mine.
To meet the conditions of the approval, Xstrata has to implement measures to protect biodiversity.
The approval allows Xstrata to advance to the final stage of its mining lease application for the project.
Xstrata Coal Queensland chief operating officer Reinhold Schmidt said the Wandoan project was an important part of the company’s organic growth strategy.
“Together with the proposed rail and port developments, the Wandoan coal project would help establish the Surat Basin as an internationally competitive coal export region,” he said.
Surat Basin explorer MetroCoal was encouraged by the approval, as its Wandoan West permit is adjacent to Xstrata’s project and its Columboola permit is 80 kilometres west of the Wandoan township.
Xstrata’s Wandoan project received Queensland government approval in November.
Xstrata owns 75% of the Wandoan joint venture, while Japanese trading house Itochu owns 12.5% and Sumisho Coal Australia owns the remaining 12.5%.
