The construction of the mine will create around 400 new jobs, with an expected 300 employees required for the ongoing operation of the site.

A further 700 employment opportunities will be created indirectly as a result of the development.

The Mangoola Coal mine will produce up to 10.5 million tonnes per year of run of mine ROM of both export and domestic quality thermal coal with an expected mine life of 18 years.

Mangoola Coal will generate over AUD35 million ($33 million) per annum for the NSW State Government through coal royalties and provide significant support to local infrastructure, employment and training projects through a Memorandum of Understanding with Muswellbrook Shire Council.

Peter Freyberg, Xstrata Coal Chief Executive, stated that, “Xstrata Coal is the largest producer of export coal in New South Wales, with a proven history of successful project development. We have the technical skills, experience and senior management in place to deliver projects on time and on budget, as demonstrated by the recent completion of our Liddell and Glendell open cut projects.”

At each stage of the Mangoola Coal project, Xstrata Coal will implement detailed environmental management processes to address energy conservation, air quality, noise and vibration, water resources, and any potential impacts to flora and fauna.

Mangoola Coal will produce coal for both the export and domestic markets in a 80:20 ratio over the life of the mine. An agreement for the first 12 years of domestic production is in place with Macquarie Generation (Bayswater and Liddell power stations). Export output will range between 6 million tonnes and 7 million tonnes per annum. All product coal will be transported by rail from the mine site to either Macquarie Generation or the port of Newcastle.

Major construction works will commence upon the issuance of the mining lease. Development consents and other approvals have been received.

Previously, Centennial Coal completed the sale of its Anvil Hill development to XStrata for A$454 million.

Centennial is using the proceeds of both sales to reduce debt and for capital management initiatives.