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.

In May 2007, XCQ lodged three mining lease applications for the Wandoan Coal Project, which covers approximately 32,000 hectares of Mining Lease Application area west of Wandoan.

In December 2007, the Queensland Coordinator General declared an Environmental Impact Statement (EIS) would be required from the Wandoan Coal Project.

In July 2008, the Commonwealth Minister for the Environment, Heritage and the Arts determined that the project would also need approval under Commonwealth environmental legislation. Under the Bilateral Agreement between the Commonwealth and Queensland Governments the EIS process has been accredited to meet the requirements of Commonwealth environmental legislation. 

An EIS identifies 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. These are available for public viewing. The EIS is a major step in the project approval process.