The State Government said BMA Red Hill wanted to amend its mining lease application over the Red Hill tenement near Moranbah to allow for an extension of three long wall panels at the Broadmeadow underground mine and allow for a future expansion at the neighbouring Goonyella Riverside Mine.

The State Government acknowledged that this would, in turn, allow for the development of the Red Hill mine with about 14 million tonnes a year production capacity. That sort of production output puts the project in the mega-project category, alongside some of the planned thermal coal mines in the Galilee Basin.

The project would be expected to create 2000 jobs in construction and another 1500 in operations. The project is subject to environmental approvals by the Co-ordinator general.

It comes as reports filter out that Coal India is negotiating with unnamed Australian companies for the purchase of two thermal coal mines in a deal valued at $4 billion. The report claims the deal would also give the state-owned company about 28 million tonnes a year of high-quality thermal coal.

GVK Progresses plans
GVK Hancock Coal is progressing with its plans in the Galilee Basin signing a Coal Mine Operations Contract with Thiess. Signed on 6 June 2013 GVK Hancock will be working exclusively with Thiess to develop a 10-year mine plan and budget. Thiess’ technical, engineering and plant expertise will be applied to develop the operational strategy and management plans, ensuring the thermal coal mine is a world-class, cost competitive operation. The team is expected to finalise the operational strategy, mine planning and management plan by the end of the year.

The Alpha Coal Project, enjoys favourable geology. Its four principle layers dip from east to west and vary in thickness ranging from 3 to 8 metre. This makes the mine suitable for high-production open-cut mining.

GVK is also progressing approvals on its $4.2 Billion Kevin’s Corner project and recently received environmental approval from the Co-ordinator General.