Australia's Whitehaven Coal Set for Construction

Researched by Industrial Info Resources (Perth, Australia)--Recent announcements show that many Australian companies are struggling with volatile commodity prices and a slowing export market. Compounding the problem are cautious investors and slowing global demand. However, Whitehaven Coal Limited (ASX:WHC) (Sydney, Australia) recently announced that after securing required funds and permits for progression, it is weeks away from early site work that will lead to major construction.

Whitehaven Coal is a relatively young company with diversified interests in many projects. One is the Maules Creek aboveground coal mine and processing project, in which Whitehaven has a 75% interest. It is believed to be one of the last major undeveloped, multi-seam coal deposits in New South Wales, Australia. The project is estimated to be worth $697 million (AUD$767 million) and has an approximately 30-year "life-of-mine," based on production of about 11 million tonnes per annum.

The Australian approval process for projected and operational projects is very comprehensive, often involving several years and extensive reviews. Whitehaven has finalized the lengthy process, which took about three years to complete.

"The project has been through one of the most rigorous planning approvals processes ever undertaken by a mine in New South Wales and has been reviewed by a wide range of highly regarded environmental experts," said Whitehaven Managing Director Paul Flynn.

The project is expected to be operational by the end of 2014, with the majority of the coal handling and preparation plant already pre-fabricated and within close proximity of the proposed project site.

With low prospects of employment due to the slowdown in the economy, this project is a very welcome opportunity for the company and the state of New South Wales. The overall operation, including construction and ongoing operations, is expected to generate approximately 340 full-time positions during construction and 470 positions for ongoing roles.

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