The Wilkie coal mine, which was shuttered by Peabody in 2014, expects to produce about 2.4 million tonnes a year with shipments expected later this year, but has plans for much more with exploration permits at Horse Creek.

The announcement came as Whitehaven announced the start of mining operations at the Vickery project in NSW. A return to full-scale mining would be made later in the year, but the decision has angered environmentalists and surrounding landowners who have campaigned against the project for several years.

The Wilkie owners, New Wilkie Energy also holds a potentially large-scale metallurgical coal development project near Emerald. The company is run by a group of Sydney businessmen led by managing director Gary Williams.

The company is considering offsetting its emissions with large-scale renewable energy projects in the region and intends to use former mining areas that it owns at Wilkie Creek as a solar farm.