Shenhua claims NSW mine approval

China Shenhua Energy Co Ltd said it has won approval from the state government of New South Wales in Australia to build a coal mine with annual production of 10 million tons, and is awaiting a green light from the country's capital Canberra to start construction.

Shenhua bought the thermal and semi-soft coking coal project six years ago just before a peak in coal prices, which have since slumped to over-five-year lows.

Winning state approval for the Shenhua Watermark mine, which would be the company's first new large-scale mine, involved six years of assessments and included modifications in response to concerns raised by farmers. The state in the past year rejected other coal projects for environmental reasons.