Xstrata's Wandoan coalmine gets federal tick

 A COALMINE with the potential to become the biggest in the southern hemisphere - Xstrata's 30 million-tonne-a-year Wandoan project in central Queensland - has quietly received environmental approval.

Federal Environment Minister Tony Burke approved the $6 billion development on Monday last week. Xstrata placed a statement on its website welcoming the decision on Friday.

Mr Burke said he was not swayed by the economic benefit of the project to Queensland and that strict environmental conditions would be met.

"While I considered the economic benefits of the project, my focus was on protecting environmental matters of national significance through strict conditions that will minimise potential environmental impacts,'' he said.

The approval takes Xstrata a step closer to a final investment decision, which is expected in the December quarter. The company hopes to be exporting the thermal coal by 2014.

The mine is a joint venture project in which Xstrata holds 75 per cent and ICRA (Itochu) and Sumisho Coal Australia each hold 12.5 per cent stakes.