BHP Billiton subsidiary Queensland Coal Investments (QCI) is looking at coal exploration in the Cloncurry and McKinlay shires.
The miner issued an exploration notice for a 95km2 tenement which runs across the two shires in Queensland, the North West Star reports.
The land is located north of Quamby, in a region more known for copper and gold than coal.
In regional terms, the state’s Bowen Basin is viewed as Queensland’s coal heartland.
However, according to the North West Star, coal discoveries have become more common in the north west region with increased exploration, and coal seam gas projects have also been put forward in the nearby Flinders and Richmond shires.
QCI’s notice is now the furthest west coal exploration has been announced.
Betty Kiernan, Mount Isa’s MP, stated that she does not know of any other coal exploration this far west.
"I’ve never heard of anyone finding coal in the Mount Isa minerals province before," she said.
"But coal is one of the most sought after resources in the world so it doesn’t surprise me to hear they’re looking."