Peabody Energy has entered a framework agreement with the Government of the Xinjiang Uyghur Autonomous Region to develop the 50 million tonnes-per-year surface coal mine in Xinjiang, China.

The company will construct, manage and operate the mine using best practices in safety, training, productivity, resource recovery, environmental standards and land restoration.

The government expects to increase Xinjiang’s coal output from 100 million tonnes to more than one billion tonnes.

Peabody Energy will also work in collaboration with the Xinjiang Government to conduct geologic, engineering and environmental reviews to select a final location for the facility.

The work will also include the construction of a new rail link, which will be operational by 2013.