Muswellbrook Coal Company plans to develop a new mine at Castle Rock, about 3km north-east of Muswellbrook in New South Wales, Australia.
Muswellbrook's existing mine is expected to close in the next five years; however, the company intends to make headfway on the new open cut operation.
Development plans are continuing despite the disorder currently affecting the Hunter Valley coal industry.
Muswellbrook will apply to the Mining and Petroleum Gateway Panel for a grant to meet the $2bn capital cost for the proposed project.
The new open cut Castle Rock mine will create more than 500 construction jobs, reports ABC News.
It is estimated that the mine can produce 15 million tonnes of thermal coal a year for approximately 30 years.
ABC News has said the company is expecting to begin construction on Castle Rock open cut mine in 2019.
Muswellbrook Coal Company is wholly owned by Idemitsu Australia Resources.