NEWCASTLE Coal Infrastructure Group's $1 billion coal loader on[DS] Kooragang Island is a step closer to commercial operation after receiving its first trainload of coal.
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The 74 wagons of coal arrived yesterday morning from the Wilpinjong mine near Gulgong, about 275 kilometres away by rail.
While the coal has a market value of about $750,000, it is not destined for sale.
As NSW Ports and Waterways Minister Paul McLeay observed yesterday, the "sacrificial coal" will be used to form the base of the terminal's coal stockpiles.
NCIG was unwilling to give firm dates on a commercial start-up project but The Herald was told the company hopes to load at least one test vessel of coal next month and to have regular shipments running by the middle of the year.
NCIG project director Rob Yeates said the commissioning process would continue throughout the year.
Mr McLeay congratulated NCIG on yesterday's milestone, saying the loader's equipment passed its initial test with flying colours.
"This is an exciting development in a long-term project," Mr McLeay said.
NCIG which has BHP Billiton as its biggest shareholder was formed in September 2004 by a breakaway group of coal companies unhappy with Newcastle's infamous coal queues.
Mr McLeay said the Government approved the new loader in April 2007 and work began in October of that year.
NCIG's first stage will handle up to 33 million tonnes a year, and the company has approval for a second stage, which would double capacity.
The Rio Tinto-managed Port Waratah Coal Services operates Newcastle's two established coal loaders, which have a combined capacity of about 110 million tonnes a year.
PWCS announced this month that it was spending $670 million to add 20 million tonnes to its Kooragang terminal.
