Is this the reason? Xstrata eyeing Queensland coal...

Is this the reason?

Xstrata eyeing Queensland coal operation
February 1, 2010 - 12:14PM

AAP

Anglo-Swiss mining giant Xstrata says it is investigating the possibility of developing a huge thermal coal operation in Queensland.

Xstrata on Monday confirmed a story in The Australian newspaper that said the miner was hatching plans to build a 100-million-tonnes-a-year operation near Wandoan, 400 kilometres north-west of Brisbane.

Xstrata communications manager James Rickards said the plans were a long way from being finalised and still faced a number of hurdles.

While the main Wandoan project was well advanced, planned to produce 30 million tonnes per year after beginning production in 2014, three other potential sites nearby were at a much earlier stage, he said.

"We are currently exploring three other areas outside of that mine within the Wandoan region, to consider the possibility of developing those up to be pits of about 25 million tonnes per annum, as well.

"So it is not an expansion of the current mine from 30 million tonnes to 100, it is the development of three other regions," Mr Rickards said.

"It is still very early stages, and we are yet to complete any of the feasibility, pre-feasibility or environmental studies of those other regions."

Mr Rickards said that developing the three new sites was not expected until the 2020s.

The current Wandoan project, expected to cost $6 billion to build, still was dependent on feasibility studies, he said.

If the complete suite of mines are built, the project is expected to cost more than $15 billion and the area would compete with the Hunter Valley as Australia's largest coal-producing region.

Thermal coal is used mainly in power stations in producing electricity.