Waratah Coal is planning for its proposed $7.5 billion Galilee thermal coal project in Central Queensland to start producing coal in late 2012, the company said.
The mine will produce and export high volatile, low sulphur, steaming coal.
According to Waratah, the proposed open cut mine contains an inferred thermal coal resource of in excess of 4.3 billion tonnes and is planned to have an initial export capacity of 25 million tonnes.
The mine’s export capability is ultimately planned to increase to 40 million tonnes per annum with exports due to start in 2013.
The coal from the mine will be processed at an on-site facility north of the town of Alpha, 160km to the west of Emerald, with processed coal then transported by a 495 km rail system from the Galilee Basin to a planned export port facility on the Central Queensland coast.
In order to transport the coal, Waratah said it will construct a state-of-the-art, heavy haul, standard gauge rail system to support 21,000 tonne train units.
The new rail system will be equipped with dual gauge rail from the Bowen Basin mining area to the port to accommodate third party users from the region.
According to Waratah, the export facility for shipping the coal is planned for within the Defence Department’s Shoalwater Bay Training Area, and will have an initial capacity of 50 million tonnes of coal per year and will be designed to accommodate a full range of bulk carriers.
Once the port facility reaches its full capacity of 50 million tonnes up to 50 trains will take coal to the port each week, Waratah said.
Waratah plans for approximately eight to 10 bulk carriers to enter the port on a weekly basis with a range of destinations including Japan, Korea, China, Taiwan, other Asian nations and India.
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