Xstrata Coal is the world’s largest exporter of thermal coal and a significant producer of premium quality hard coking coal and semi-soft coal. Headquartered in Sydney, Xstrata Coal has interests in over 30 operating coal mines in Australia, South Africa and Colombia and an exploration project in Nova Scotia, Canada.

Xstrata Coal Queensland (XCQ), a subsidiary of Xstrata Coal, is committed to developing the Wandoan Coal Project and has commenced the first stages of the Project including publishing an Environmental Impact Statement (EIS) and Supplementary EIS. The Wandoan Coal Project received conditional environmental approval from the Commonwealth Government in March 2011. The approval is a significant milestone for the development of the Project, and it allows Xstrata Coal to proceed with the final stage of the mining lease application. The Wandoan Coal Project received environmental approval from the Queensland Government in accordance with the conditions in the Coordinator-General’s Report for the Project in November 2010. A final commitment to proceed with the Project will depend on port access at the time and the resolution of engineering studies, geological investigation, community and environmental considerations and the marketability of the product.

If the Wandoan Coal Project proceeds, it will provide significant opportunities for Queensland's economy, with new employment, infrastructure and export revenue. It will also provide great benefits to the local communities including jobs, training, business opportunities and upgraded local services.

Peter Freyberg
Chief Executive
Xstrata Coal

A joint message from Steve Bridger, Executive General Manager, Wandoan Coal Project and Bill McKinstrey, General Manager, Southern Region

The Wandoan Coal Project is an example of XCQ’s commitment to regional development and progressing potential mine projects throughout Queensland. Working closely with local communities and all levels of government, XCQ has conducted an EIS and feasibility studies, to determine if the Project has the potential to become a coal mining operation.

If it does, the operation will provide impetus for ongoing major investment and development of the Surat Basin. In particular, development of the proposed Wandoan coal mine will drive construction of the Surat Basin Rail to the Port of Gladstone and the potential new port developments at Wiggins Island and Balaclava Island. Together these projects will open up an estimated four billion tonnes of thermal coal in the Surat Basin for development and export.

A decision to proceed with mine development is not expected until after the resolution of the environmental and planning assessment process. The Federal Government's conditional environmental approval in March 2011 allows us to proceed with the final stage of the mining lease application. If the Wandoan Coal Project is developed, the end result will be an open-cut coal mine producing approximately 30 million tonnes a year of run-of-mine coal, with an expected mine life of 30 years. This is certain to provide many positive outcomes on a local, regional, state and national level.

For more information on Xstrata Coal, please visit www.xstratacoal.com