The Queensland Parliament has backed legislative changes that will resolve a commercial dispute involving Glencore’s Suttor mine and QCoal Group’s $1.7 billion Byerwen project, according to Natural Resources and Mines Minister Dr Anthony Lynham.

“The amendments supported today allow both projects to proceed, on the timelines that both companies have indicated in their mine plans,” Dr Lynham said.

“The following amendments are the necessary and the sad result of the failure of two mining giants to be able to negotiate in good faith.”

QCoal and Glencore have applied for mining leases over a tract of land between Glencore’s Newlands and Suttor Creek mines, near Glenden in the Bowen Basin.

The State Governmnet said the Suttor mine employed 450 people and QCoal’s Byerwen project was expected to create up to 100 construction jobs, and up to 500 ongoing jobs once fully operational.

Glencore is seeking a mining lease for transportation to enable the transport of materials between its two existing mines, while the QCoal group is seeking the rights to the mineral resources beneath the transport corridor.

The amendments to the Land and Other Legislation Amendment Bill 2016 will grant Glencore’s transportation mining lease application until December 31, 2032, with no renewal. 

No renewal will allow the QCoal Group to begin mining activities as per the timeline in its mine plan.

“Now that both projects can coexist, I have asked my department to progress the QCoal mining lease quickly for my consideration,” Dr Lynham said. 

The Queensland-based QCoal Group is partnering with Japan’s JFE Steel Corporation to develop the hard coking coal mine 20km west of Glenden in Central Queensland.

It will be a staged development, expected to reach a peak capacity of about 10 million tonnes per annum.