PERTH (miningweekly.com) – Queensland’s independent Coordinator-General this week approved the development of the South Galilee coal project, which is jointly owned by privately held resources company AMCI and ASX-listed Bandanna Energy.

The opencut and underground thermal coal mine would have the potential to produce up to 17-million tonnes a year of coal for export, over 33 years.

The project was expected to create about 1 600 jobs during its construction phase and 1 300 jobs during its operational phase.

Queensland Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney welcomed the project’s approval and the rigorous conditions placed on it by the Coordinator-General.

“This is another step forward for the Galilee basin and follows Alpha Coal, Kevin’s Corner, Galilee coal project and Carmichael coal mine and rail project receiving both state and federal government approvals.”

If the project proceeds, the South Galilee coal project will be located 12 km south-west of Alpha and about 180 km west of Emerald in central Queensland.

AMCI is proposing the project will be delivered in three stages.

Stage 1 is the opencut Epsilon stage where coal would be transported on the Central Western railway for export through the Port of Gladstone. For stages 2 and 3, coal would be transported on a common user railway to the Port of Abbot Point.

Seeney said the Coordinator-General thoroughly assessed the environmental-impact statement for the project and placed 110 conditions to adequately avoid or mitigate potential impacts.

“If the mine proceeds, AMCI must enter into make-good agreements with land-holders and undertake groundwater modelling and monitoring. The mine itself will have to incorporate flood protection measures like levee banks and implement a strict mine water management system.”

The Queensland Coordinator-General’s evaluation report now goes to the Australian Environment Minister for a final decision.