Wallarah 2 Coal Project Awaits Green Light from New South Wales Government

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Researched by Industrial Info Resources Australia (Perth, Australia)--The Wyong Areas Coal Joint Venture recently said that it expects to receive government approval for the Wallarah 2 Coal Project (W2CP) in the third quarter of 2014, allowing the joint venture to move ahead with the proposed AU$800 million (US$741.02 million) underground mining operation. The state government has conducted a comprehensive assessment of the project and is proposing that it be approved, subject to strict conditions.

Located on the Central Coast of New South Wales (NSW), approximately 45 kilometers southwest of Newcastle, the coal project is set to provide extensive economic and social benefits to Wyong and the wider NSW region through job creation and business opportunities. When approvals have been met, major construction on the project is expected to provide more than 1,000 direct and indirect job opportunities that, once operations commence, will provide a further 1,700 opportunities state-wide.

Sources working on the project confirm that the W2CP will involve the construction of an underground coal mine and associated facilities that will guarantee the mine's ability to remain operational for at least 28 years. It's expected that once the project is completed, W2CP will be primed to allow for the extraction of more than 5 million tonnes per annum of export-quality thermal coal via long-wall mining methods. There will be no road transport of coal; instead, all coal movement will travel underground to the Toohey's Road site, and then be transported by rail to destined markets.

An optimistic time schedule would suggest that this project may begin major construction in the first quarter of 2015; being an underground long wall mine, it likely will comprise coal-handling and storage facilities; rail loop and loading infrastructure; gas and water management facilities; maintenance facilities; and administration buildings. An interesting feature is the anticipated 4-kilometer decline development required to reach the deposit's central ore body.

The project is a combined joint venture consisting of five separate entities. However, Kores Australia Pty Limited, a fully owned subsidiary of the Korea Resources Corporation (KS:RESCOZ) (Seoul, South Korea), is the major shareholder and manager of the Wyong Areas Cole Joint Venture, as a result of a recent increase in its equity. South Korea's mining and investment agency holds an 82.25% ownership of the venture.

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