Centennial Coal will kick start an exploration drilling program covering nearly 95 square kilometres in the Western Coalfields to tap into unrealised potential in the area.
The development follows a NSW Department of Primary Industries competitive tender process to further develop coal resources in the region.
Centennial Coal spokesman Katie Brassil said the underdeveloped area is believed to be highly prospective for export and domestic thermal coal and would lead to synergies with the company’s existing operations.
“These new coal areas are a natural fit for our Airly and Charbon operations and would provide significant synergies with the western rail line,” she told MINING DAILY.
“We are well placed for the project as we have significant operations in the area and the infrastructure to support further development.”
Centennial will embark on an extensive drilling program over the next couple of years to gather geological data to gauge the mining potential of the area.
“It will give us a better understanding of the coal quality and quantity in the area and provide some idea of the potential of any future operations,” Brassil said.
Subject to equipment availalability and human resources, Brassil expects the drilling will be completed within the “next couple of years”.
“These studies will give us an insight to future projects before significant input costs are invested to the area,” she said.