Whitehaven Coal (WHC) has entered into an agreement with Idemitsu Australia Resources subsidiary Boggabri Coal to extend its existing Tarrawonga joint venture (JV).

Under the terms of the agreement, the firms have approved the expansion of both Tarrawonga and Boggabri Coal.

Expansion of Boggabri Coal will include the development of a rail spur, and a coal-handling and preparation plant.

The tenement ownership within the expanded JV area will be restructured to ensure that WHC and Boggabri Coal hold a 70% and 30% interest respectively in each tenement within the project area.

Whitehaven managing director Tony Haggarty said the proposed extension of the Tarrawonga JV would promote the most efficient use of assets within the Gunnedah Basin, in New South Wales, Australia.