The aim of the project is to investigate the best way to turn mine water into useable fresh water.

The company will look into three different types of desalination plant at its Douglas site, near Wollongong in New South Wales.

Douglas is being developed by the company as a replacement for the diminishing reserves of the current Appin Colliery. The longwall will produce coking coal by early 2006.

Sustainable development general manager Wendy Tyrrell said the company was considering a full-scale desalination plant for installation in 2007/08, which will enable re-use of mine water for up to a maximum of two megalitres per day.

“Basically we are looking for a method whereby low level saline underground water becomes fresh water which can then be reused on-site,” she said.

The plant will create both environmental and cost benefits for the mine with the reduction in consumption of fresh water from Sydney Water.

Tyrrell said Illawarra Coal was allowed to discharge one megalitre of water per day and she hoped a new plant would reduce the salinity that is discharged down the creek which feeds the Nepean River.

Tyrrell said while Illawarra Coal could not guarantee success, the company was excited about the potential for the project to provide a suite of environmental benefits, including improved quality of waters leaving its minesites and reduced use of fresh water.

The trials will determine the feasibility of the technology, with possible application to the company’s other operations and for broader industry use.