BHP Billiton intends to build a new thermal coal mine near Gunnedah in the fertile Liverpool Plains region of northern New South Wales (NSW).

Caroona is expected to export 10 million tonnes of thermal coal a year and is considered as the nation’s largest underground coal mine.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

BHP Billiton has also submitted papers to the Federal Environment Department for its underground mine.

The company noted that the mine would operate for 30 years and employ up to 400 people, with about 600 positions to be filled during peak construction periods.

"The preliminary environmental studies…indicate that it will not impact the alluvial irrigation aquifers that are essential for agricultural production in the region."

Mine construction is anticipated to commence in 2018 if approved, with production slated for 2021.

BHP’s NSW thermal coal asset president Peter Sharpe told the website that the preliminary environmental studies undertaken for the Gateway submission of the mine indicate that it will not impact the alluvial irrigation aquifers that are essential for agricultural production in the region.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Separately, the world’s largest diversified resources company is facing significant opposition from the local community, as the new mine would impact the region’s water supplies.

BHP is conducting exploration activities at Caroona in the Gunnedah basin in north-western NSW, to potentially develop the thermal coal mine and is working in consultation with the community to address concerns pertaining to the impacts of any proposed coal mine.

According to the company, the Caroona coal project is part of NSW Energy Coal, which also manages Mt Arthur Coal in the NSW Upper Hunter region and its 35% shareholding in the Newcastle Coal Infrastructure Group.

Energy

Mining Technology Excellence Awards - Nominations Closed

Nominations are now closed for the Mining Technology Excellence Awards. A big thanks to all the organisations that entered – your response has been outstanding, showcasing exceptional innovation, leadership, and impact

Excellence in Action
Awarded the 2025 Mining Technology Excellence Innovation Award for Equipment Diagnostics, Razor Labs’ DataMind AI™ platform turns sensor data and imagery into actionable maintenance insights, avoiding hundreds of thousands of dollars in downtime. Find out how leading mines are using DataMind AI™ to keep critical assets running.

Discover the Impact