Whitehaven Coal is set to become a major coal player and more than double production after it received approval to develop the massive Maules Creek project in NSW.
On a tumultuous day that started with a report that chief executive Tony Haggarty wanted to quit, the miner received NSW government approval a year later than it had hoped for.
Whitehaven acquired what will be one of the nation's largest coal mines as part of the $5.1 billion merger with Nathan Tinkler's Aston Resources this year.
It has the potential to be an 11 million tonne a year mine, producing both high-quality thermal coal and lower-quality coking coal, used in steelmaking.
If Maules Creek and its other mines expand as planned, Whitehaven will be a 25-30 million tonne a year coalminer by 2017.
It made a $62.5 million net profit when it produced less than five million tonnes in 2011-12.
Mr Haggarty made no mention of his speculated departure in his Maules Creek project statement.
He said he welcomed the NSW government's decision, noting that the Gunnedah Basin-based project in the state's north-west still needed approval from the federal Department of Sustainability, Environment, Water Population and Communities.
"Notwithstanding the stringent environmental conditions which have been placed on the project and the difficult coal market at present, this is a world-class project and Whitehaven will be seeking to bring it into production as soon as possible," he said.
The mine was opposed by NSW Labor and the Greens, while protest group Front Line Action on Coal on Thursday vowed to continue its 82-day-long blockade camp in the forest.
Spokesman Murray Dreschler said the mine would destroy about 1360 hectares of native vegetation and large tracts of productive farmland.
Whitehaven refused to comment on the report that Mr Haggarty flagged to chairman Mark Vaile his intentions to leave and that a search for a replacement had begun.
The plans related to entrepreneur Mr Tinkler's $5.25 billion takeover bid, which recently collapsed but he remains the largest shareholder and is rumoured to be planning another tilt.
Mr Tinkler's relations with the board have soured, with his demand this week in a letter that he be provided with earnings results and guidance and an operational update - including for the then-unapproved Maules Creek - ahead of its release to market.
The company refused his request, saying it would release a quarterly report as planned on Friday, but went into a trading halt to review its market outlook amid market rumours that the weak prices have hit revenue.
Patersons research analyst Matthew Trivett said Whitehaven was in a solid position, with Japan's J-Power having already invested $370 million in the Maules Creek project for a 10 per cent stake and offtake agreement, and Itochu buying 15 per cent.
Also on Thursday, weaker coal prices led Whitehaven to also announce it would close its Sunnyside mine, near Gunnedah, indefinitely, although the workers affected will be relocated.
The benchmark thermal coal price at Newcastle, NSW, dropped to below $80 a tonne this week, its lowest since 2009.
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