The open cut project near Dunedoo in Central West NSW is targeting 220 million tonnes of thermal coal production over a 27-year mine life and was initially designed to supply subsidised coal to state-owned power stations.

In calling for expressions of interest yesterday, NSW Treasurer Andrew Constance said the previous Labor government’s Cobbora plans had exposed taxpayers to a liability of more than $1.5 billion in development and operation costs.

“The NSW Liberals and Nationals government has made clear from day one that the state should not be in the business of running a coal mine,” Constance said.

“The launch of the transaction process for the Cobbora site is another step in cleaning up the fiscal mess left by Labor and its failed energy reforms.”

Bidders have until early September to participate in the expressions of interest phase of the sale.

All federal and state approvals are in to allow project development to start.

The state government also allocated the $20 million set aside for local infrastructure under the Cobbora Transition Fund, with $4 million going to four councils for building projects.

The Cobbora project, which aims to mine up to 20 million tonnes per annum over the next 21 years, is expected to create more than 1100 construction and operational jobs.