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Xstrata Re-Ignites Wandoan Coal Programme

The recent decision to scrap the proposed RSPT and the introduction of the revised MRRT has lead Swiss mining company Xstrata to restart work on the Wandoan Coal mine. The planned $6 billion coal mine including exploration activities are firing back up.

Wandoan Sample Pit, Xstrata coal has removed close to 50,000 tonnes of coal from a sample pit at Wandoan for coal testing. Image Credit: Wandoan Coal Project and Copyright 2008 MRM.

Expenditure on the project had been suspended in May this year after the then Prime Minister Kevin Rudd had announced the proposed 40% mining tax.

Peter Freyberg, Xstrata Coal chief executive, has been at the forefront of the mining industry’s campaign against the new tax. He is happy with the new MRRT and hopes that the detailed and constructive discussion with the government this week will yield to a more acceptable tax.

If approved the Wandon Coal mine is likely to provide over 3,000 jobs over the construction of infrastructure in the next five years. A final investment decision on the mine and associated infrastructure is expected in the second half of 2011.

Banana Shire Mayor John Hooper was happy that the uncertainty over the project had finally been resolved. Banana Shire is situated in Central Queensland. It is 120 km west of the Port of Gladstone.

Joel Scanlon

Written by

Joel Scanlon

Joel emigrated to Australia in 1995 and worked for five years in the mining industry as an exploration geotechnician, using GIS mapping and CAD software. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm. After that, he ran a successful business providing web services to businesses along the eastern seaboard of Australia. During this time, he developed and launched News-Medical.Net. Joel has been working with AZoNetwork since the company was founded in 2000.


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