New Hope's (ASX:NHC) long-delayed New Acland thermal coal mine in Queensland is set to ramp up to full production following a legal settlement over water usage.
The agreement ends a 15-year legal battle with the Oakey Coal Action Alliance, represented by the Environmental Defenders Office, and clears the way for the mine to nearly double its output by the end of the decade.
While the settlement terms remain undisclosed, they require approval from the Queensland Department of Local Government, Water and Volunteers, and subsequent Land Court filings.
New Hope stated that the deal allows the mine to proceed with its operational ramp-up without further delays.
The expansion will enable the mine to produce up to 5 million tonnes of coal annually for 12 to 15 years.
Despite prior legal challenges, including a 2021 High Court ruling favouring environmental groups, New Hope began limited production in 2023.
The mine had operated below capacity to mitigate risks of water licence revocation.
The announcement coincides with a slump in thermal coal prices, which have fallen 23% over the past five months, signalling the end of a super cycle that drove record profits.
New Hope, backed by Washington H. Soul Pattinson (ASX:SOL), generated unprecedented earnings during the coal boom but now faces tighter margins.
Despite market challenges, the miner's ability to proceed with full-scale operations marks a victory in its expansion efforts.