Coal & Allied’s Mt Pleasant project was approved more than a decade ago, but the mine was never built, mainly due to capacity constraints at the Port of Newcastle.

The mine’s operations manager Graham Gageler said last week’s approval was a step forward in development of the greenfield thermal coal mine.

Mr Gageler said the mine would create about 700 jobs during construction and 350 during operation.

First production is planned for 2014.

The open cut mine, located three kilometres from town and adjacent to Coal & Allied’s Bengalla mine, has been approved to extract up to 10.5 million tonnes of run-of-mine coal for a period of 21 years.

The approval would allow a rail loop, loadout facility and conveyor, connecting the mine to the Muswellbrook to Ulan rail line for transport of the coal to port.

Mr Gageler said the consent modification provided flexibility in mine development.

Muswellbrook Shire mayor Martin Rush has praised the mine for its commitment to work at best practice standards.

He said the mine had also voluntarily committed to substantial community contributions.

“The company is rightly to be congratulated,” Cr Rush said.

“As a result of its approval, a minimum of 36 local young men and women will have the opportunity of taking up an apprenticeship through the Mt Pleasant project.”

Coal & Allied has entered into a voluntary agreement with Muswellbrook Shire Council and will contribute $500,000 a year to a community fund, $220,000 a year to road maintenance and $20,000 a year towards funding a council environmental officer.

The company will also employ at least four apprentices a year, either directly through the mine or by sponsorship at local businesses.