Gujarat said a surface drilling program had been mapped out to further test the coal quality and quantities to “modern standards” and to assist mine planning.
The company will also bring in engineering contractors to commence a study of the location of a shaft and surface rail loop design and costs for future construction.
The study will form part of plans to ramp up to 1.5 million tonnes per annum by 2010.
Gujarat subsidiary Bulli Resources has signed a coal offtake agreement for 100% of the product produced from the mine.
The mine, located 20km south of Port Kembla, was closed during the 1980s after the Tallawarra Power Station closed and the mine output was no longer required.
Gujarat entered the Australian market a few years ago when it purchased the Bellambi No. 1 coal mine and recommenced production in September 2005.
It reopened the portal of the Avondale mine on May 4, 2006.
