Miner Glencore has reactivated plans for the A$7B Wandoan coal project near Roma in the Surat Basin in Southwest Queensland.
The commodity giant first applied for the mining leases in 2007, but put plans on hold in 2013. While development is still some way from proceeding – and Glencore said this will only occur when market conditions allow – in early August, the Queensland Government approved the grant of three 27-year leases over the 30,000-ha Stage 1.
When operations begin, the mine could produce up to 22 Mtpa of high-quality thermal coal. It will be the first major coal project of this scale in the Surat Basin.
A major impediment to the development is the current lack of a rail link from the basin to the port of Gladstone.
Glencore is to acquire a 49% interest in the Hunter Valley Operations coal mine in New South Wales, from Yancoal Australia. This follows Yancoal’s acquisition of Coal & Allied from Rio Tinto. Glencore will acquire a 16.6% interest in HVO directly from Yancoal, and the companies will work together to acquire Mitsubishi Development Pty Ltd’s 32.4% interest in HVO to achieve Glencore’s 49% stake.