The company said the new Mineral Resource Rent Tax represented significant progress towards a mining tax regime that would satisfy the company’s core principals of prospectivity and maintaining international competitiveness, and came after the political hiatus of the RSPT.

“In recent weeks Xstrata participated in detailed and constructive discussions with the government and believe there is now an improved, shared understanding as to what drives mining investment decisions and the importance of a stable long-term fiscal regime,” chief executive of Xstrata Coal Peter Freyberg said.

“Today’s decision effectively lifts the suspension on expenditure announced by Xstrata last month and allows the next stage of planning for this internationally significant Wandoan project to proceed.”

If approved, the $A6 billion Wandoan project in the Surat Basin would lead to approximately 3000 jobs over the next five years. A decision on this is likely to be made in the second half of 2011, the company said.

Before the RSPT announcement, Xstrata was investigating options to upscale its massive Wandoan project to a 100 million tonnes per annum mining complex catering to three other potential mines.

The open cut project was significant in its ambition to open up the Surat Basin thermal coal region.

Early works were expected to start this month, including drilling, the construction of workers’ accommodation, and road and communications upgrades.