Xstrata Coal has received conditional environmental approval from the Commonwealth Government for the Wandoan coal project in the Surat Basin, Queensland, Australia.

The approval covers the construction and operation of an open-cut coal mine and supporting infrastructure in the mining lease application areas located west of Wandoan.

It also includes construction and operation of an underground water supply pipeline, rising of the existing Glebe Weir and construction of an associated pipeline to transport water from the Dawson River to the proposed Wandoan Coal Mine.

To meet the conditions of the approval Xstrata Coal must implement measures to protect biodiversity.

Xstrata Coal Queensland chief operating officer Reinhold Schmidt said that with the proposed rail and port developments, the Wandoan coal project will help establish the Surat Basin as an internationally competitive coal export region.