Moreton Resources has taken the next step in developing a new thermal coal mine 6km south of Kingaroy by lodging plans with the Federal Government.
The company proposed to extract 10 million tonnes of coal per annum from an open-cut pit in QLD's South Burnett region, north-west of Brisbane
Moreton Resources is yet to secure a buyer for the coal and the nearest potential customer, Stanwell, said it had enough coal to supply Tarong's power stations from its Meandu Mine, 25km from Kingaroy.
The company is now targeting export opportunities, saying that the approval of a mining lease will assist the sale of the coal. Managing Director Jason Elks expects to be closer to a decision on an off-take partner and/or contracts of supply within 12-18 months, and hopes the mining lease will be approved within the next 2 years.
Letters have been sent to more than a dozen landholders affected, to begin discussions about land acquisiton.
The potential mine has raised concerns among locals and the Council given that the location is on prime agricultural land and only 5km from the Kingaory airport. These concerns are further fueled by not having a secured buyer for the coal which has left landholders feeling in limbo.
A pre-feasibility study was conducted in 2015 and more than 300 jobs wil be created if the mine goes ahead. If approved, the mine would need infrastructure to support it, including construction of access roads, potentially rail lines and installation of the mine modules to list a few.
Moreton Resources wants the coal mine in operation by 2020.
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