Money

Newcomer tells of coal bounty

UP TO 1400 jobs could be created by mining newcomer International Coal after it told the ASX of the massive coal bounty it discovered in South-West Queensland.

The group announced on Wednesday morning that its South Blackall project - about 80km northeast of Quilpie - had at least 728 million tonnes of thermal coal over just 15% of its site.

By the time drilling is finished, International director David Round said the estimate could eclipse three billion tonnes.

To put the scale of this into perspective, although mining a different type of coal, the southern hemisphere's largest planned mine in Wandoan is expected to export about 900 million tonnes over its 30-year life.

The figures released by International are "inferred" but backed by the resource industry's formal guidelines that govern resource deposits.

"This is better than we expected, substantially better," Mr Round said.

The open-cut mine could be operational by 2016, but if it becomes bogged down by government approvals, that could blow out to 2019.

The South Blackall mine would ideally export up to 50 million tonnes per year at its peak, most likely being dispatched for a terminal at Abbotcor Point in Central Queensland.

"Economically, we would have to move between 20 million tonnes and 50 million tonnes per year," Mr Round said. "And we confidently can with what will happen in the future."

He flagged that rather than investing in an exclusive railway line to move the thermal coal - used to produce electricity - International would likely join with magnate Gina Rinehart's nearby project to share infrastructure.

"We would have to develop unique infrastructure to the site, or talk to the other operators nearby."

International would look to have "up to 1000 workers involved over a couple of years", with contractors on top of that.

When International hit the ASX 12 months ago, its prospectus described the South Blackall project coal deposits as "likely to be of relatively low quality".

But the same document also suggested there would roughly 468 million tonnes to be mined, a number almost half of what was announced on Wednesday.

Topics:  asx, international coal, mining


Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Isaac welcomes new CEO

Isaac Regional Council welcomes the appointment of new chief executive officer Gary Stevenson.

Mayor Baker today announced he will start with Isaac from July 1.

Trolley delivers auction success

GOOD IDEAS: Ideas man Roger Little with boilermaker fabricator Paul Dickens who helped make the trolley.

Trolley delivers auction success

Meet the Flynn candidates for the 2016 Federal Election

Federal member for Flynn Ken O'Dowd is campaigning for a third term. Photo Paul Braven / The Observer

Meet your candidates for the seat of Flynn.

Latest deals and offers

Help out appeal for Salvation Army

PLAY a valuable part in the work the Salvation Army achieves in the Central Highlands by donating to the Red Shield Appeal on May 28–29.

Isaac welcomes new CEO

Isaac Regional Council welcomes the appointment of new chief executive officer Gary Stevenson.

Mayor Baker today announced he will start with Isaac from July 1.

Trolley delivers auction success

GOOD IDEAS: Ideas man Roger Little with boilermaker fabricator Paul Dickens who helped make the trolley.

Trolley delivers auction success

Meet the Flynn candidates for the 2016 Federal Election

Federal member for Flynn Ken O'Dowd is campaigning for a third term. Photo Paul Braven / The Observer

Meet your candidates for the seat of Flynn.

Spirited game a shining success

Tanae Kearney (Sportsmanship Medallion), Braith Kemp (Coaches Medal) and Sam Chick (Play of the Day).

Spirited game a shining success

Origin starters

Clermont Junior Bears fullback Roman Revell-Blair with his under-9 team who are heading to State of Origin game one.

Origin starters

Things to do in Central Queensland this week

Capella Show. Photo Matthew Holdsworth / CQ News

Your guide to events this weekend and throughout the week

IBAC Evidence Police Bashing 5

Officers drag the woman back to her cell

In this video the woman drinks water from the toilet.

IBAC Evidence Police Bashing 4

In this video the woman asks for water as the tap in the room is broken

IBAC Evidence Police Bashing 3

In this video police continue their search and male officers are present despite...

Sale nears on last large block of land in Coolum

The 43.37ha property on South Coolum Rd has sold.

South Coolum Rd property to be land banked

Caloundra’s former Centrepoint Buffet site up for sale

FOR SALE: The home of the old Centrepoint Buffet

Restaurant fined for unhygienic practices closed months ago