The federal government is yet to make the application publicly available, and Bandanna did not reveal the targeted production in its announcement this morning.

But the company previously foreshadowed Dingo West as a potential open cut satellite pit operation capable of producing 500,000 tonnes per annum to 1Mtpa.

The site is adjacent to the Blackwater rail corridor and 250 kilometres from Gladstone’s port.

The project holds 91.1 million tonnes of inferred resources and preliminary evaluation has revealed that Dingo West could produce a “very acceptable low ash, low volatile” pulverised coal injection coal.

The low-cost development of this project could take place in a few years.

The Queensland explorer recently secured a port allocation of 4 million tonnes per annum at the planned Wiggins Island Coal Export Terminal which is due to start shipping in 2014.

Bandanna said its allocation was subject to signing a take or pay agreement and Wiggins achieving a financial close in April 2011.

The explorer is also aiming for more than 20Mtpa of production from its wholly owned “golden triangle” of the Springsure Creek, Arcturus and Arcadia projects – with all the tenements within 50km of each other in thermal coal turf of the Southern Bowen Basin.

Bandanna is seeking federal environmental clearance to meet the requirements of the Environment Protection and Biodiversity Conservation Act.

Shares in the company are up 3c to $1.595 this morning.