A proposal to dig for black coal near Oaklands in the southern Riverina has moved into the feasibility stage.

Coalworks Limited has commissioned an independent consultant to undertake the feasibility study in a process which could take until mid 2010.

Dr Andrew Firek CEO said that a number of people are employed in this early stage of the project. He said that "We employ 50, 55 subcontractors and consultants so really we are growing and actually acquired another tenement.”

He added that "So as an exploration company, the purpose of exploration company is to get into production as quickly as possible."

Dr Firek said that the feasibility study will determine whether the project will proceed further. But he says tests at the site are promising.

He said "We have very uniformed thick coal seam. Its thickness is between 10 to 20 metres. Can you imagine 10 metres of coal black and it's is very uniform quality and at this stage we have developed that resource and we are looking at open cut mining in the area."

He added that the environmental impact study will not happen until after the feasibility study which is due for completion mid next year. He said “People ask questions about our water studies, which I understand the reason, they are farmers, people who rely on water from the aquifers. So that is the area we are focusing on, it's part of so called environmental assessment which is another very important process.”

(Sourced from abc.net)