The Wandoan Coal Project has been established to investigate the possibility of opening an open-cut thermal coal mine immediately west of the Wandoan township.

The Wandoan Coal Project is being developed by Xstrata Coal Queensland, a subsidiary of Xstrata Coal and part of global mining group Xstrata plc. Xstrata Coal Queensland (XCQ) employs over 2,500 Queenslanders. It manages six mining operations and one port in Queensland, located at Rolleston, Oaky Creek, Newlands, Collinsvilleand the Abbot Point Coal Terminal.

The project is being delivered by Xstrata Coal Queensland and funded through a joint venture between Xstrata Coal Queensland (75% ownership), ICRA (Itochu) Pty Ltd (12.5% ownership) and Sumisho Coal Australia (12.5% ownership).

The proposed Mining Lease Application area covers approximately 32,000 hectares. It is anticipated that the proposed mine would:

• include an open-cut coal mine, a coal handling and preparation plant, and support facilities
• have a construction of period of two to three years, with a start date to be determined once the project receives all necessary approvals
• have an expected life of more than 30 years, with about 30 million run-of-mine tonnes of coal mined at Wandoan each year
• produce thermal coal which would be crushed, sized and washed before being transported by rail to port facilities on the Queensland coast and exported around the world, or used here in Australia

The proposed Wandoan Coal Project has the potential to provide significant opportunities for the surrounding communities and Queensland economy, with potential for new employment, infrastructure improvements, Government royalties and flow on effects to businesses in the local Wandoan, Taroom, and Miles areas.

The Queensland Government’s Coordinator-General has declared the project requires an Environmental Impact Statement to identify the social, environmental and economic benefits and impacts of the project as well as how potential impacts will be prevented or managed. An EIS and a Supplementary EIS for the Wandoan Coal Project have been developed after extensive consultation and more than 22 technical studies. The EIS is a major step in the project approval process, which will be coordinated through the Queensland Department of Infrastructure and Planning.

XCQ is participating in a Joint Venture to investigate the construction of a new rail connection known as the Surat Basin Rail, between Wandoan and the existing Moura-Gladstone line at Banana. XCQ is also working closely with QR Network regarding upgrades to its existing connections from Moura to Gladstone, and is coordinating with potential new port developments at Wiggins Island and Balaclava Island. Together these developments comprise the Surat Basin Coal Value Chain, which would provide critical mass to open up the Surat Basin in Queensland for major investment and regional development.