An Australian company has been granted an environmental permit to extract coal in Papua New Guinea's Gulf Province.
Mayur Resources has been given the green light to proceed with an exploration licence, owned by the company's subsidiary in PNG, Waterford Ltd.
It's the first time that the Conservation and Environmental Protection Authority (CEPA) has issued an environmental permit for coal bulk sampling in PNG to enable commercial grade shipments.
According to PNG Industry News, the conditions of the permit include the submission and implementation of a robust environmental management plan.
Managing director Paul Mulder said it was an exciting step in bringing PNG coal to the international market as a potential new source of energy.
The company was looking to confirm suitability of the coal for use in domestic power generation.
Mayur is also developing a proposed 50MW power station near Lae at the Western Tidal Basin in Morobe Province.