The expansion allows the company to meet its infrastructure take-or-pay obligations, including the delivery of coal to the new Wiggins Island Coal Export Terminal.

Cockatoo Coal said in a statement, "The development of the Baralaba Expansion project is currently on schedule and under budget."

The company is currently in final talks with JFE Shoji Trade (JFE) over the future plans and funding of the Baralaba joint venture.

JFE holds 37.5% stake in the Baralaba mine and a 20% in Baralaba North project.

Additionally, Cockatoo Coal and its major shareholders, Noble Group and SK Networks, are in negotiations to release up to $37m of restricted cash that was provided for infrastructure guarantees.

In April 2014, the company submitted the Environmental Impact Statement (EIS) to Department of Environment and Heritage Protection (DEHP) Queensland, to further increase production to 3.5 million tons.