Back in April the Queensland coal explorer signed the JV with China Coal’s subsidiary China Coal Import & Export Company.
This deal just received approval from the Chinese government’s National Development Reform Commission.
MetroCoal added that discussions are underway to extend the date required for the remaining Chinese government approvals.
“China Coal is working closely with the remaining Chinese Government agencies to obtain their approvals and we are collectively looking forward to the start of our joint venture on EPC 1165, Columboola,” MetroCoal chief executive Mike O’Brien said.
Under the agreement the Chinese coal company will get a 51% interest in the project for spending $30 million on the exploration of the tenement.
A minimum of $4 million must be spent within the first two years.
MetroCoal aims to be the first company to bring longwall mining to the thermal coal-rich Surat Basin.
O’Brien was general manager of the South Bulli longwall mine in 1991-92.
MetroCoal shares are down 1.5c to 28c this morning.