The study has given Eagle Downs the green light for a single and multi-longwall mining operation, 25km south of Moranbah in the Bowen Basin.

With a single longwall Eagle Downs is expected to produce 4 million tonnes per annum of hard coking coal which would increase to 7Mtpa if a second longwall was implemented.

At 7Mtpa Eagle Downs’ mine life is 37 years.

The longwalls would be accessed by a shaft and drift entry with the potential to use longwall top coal caving (LTCC) being looked at for thicker coal seams.

The project is located 7km from the Isaac Plains coal mine, which is also jointly held by the two miners, and next to BHP Billiton Mitsubishi Alliance’s Peak Downs operation.

To get the single longwall scenario up and running would cost the miners around $A892 million with production expected in June 2012.

At present-day coal prices, a single longwall operation at Eagle Downs would generate earnings before tax of around $900 million a year.

And with an eye on the future Eagle Downs has already secured 4Mtpa of capacity through the proposed expansion of Abbot Point Coal Terminal.

Earlier this year the coal port jumped from an output of 15Mtpa to 21Mtpa and is steaming ahead towards a 50Mtpa target in two years.

Final approvals for a feasibility study on the Eagle Downs project are currently underway, which would include a further exploration program and cost about $55 million over the next two years.