The Queensland Government has approved New Hope Group’s mining lease for the Colton coal project, bring it closer to development.
The project, located 10km north of Maryborough, is estimated to produce 0.5Mtpa of coking coal from the proposed Colton mine for 10 years, with the potential to expand production for more than 25 years.
New Hope Group’s managing director Shane Stephan welcomed the approval and said it showed the project’s high environmental credentials.
He added that while the approval is good news for the region, a final investment decision is still required.
“We are now in a position to study options around development timing and methodology with a view to obtaining final investment approval from the board,” Stephan said.
Earlier this year the federal government approved the $900 million expansion of New Hope Group’s New Acland coal mine, 10 years after the company first proposed the growth project.