Australian mining exploration and development firm Aquila Resources has high hopes to produce hard coking coal from its Washpool project but needs would require $320 million of capital investment.

Announcing a completed feasibility study of the project in the Bowen Basin in Queensland, Aquila said it targets to begin with construction starting in 2012, a company report indicated, a report to the to the Australian Stock Exchange (ASX) indicated.

The S&P500/ASX200-listed firm further noted that the mine would be able to produce 1.6 million tonnes of high quality hard coking coal a year for 25 years at the $106/tonne quoted price, which was quoted at the Australian port price before royalty payments.

The company estimated that, based on a likely market price of $US144/tonne, the current value of the project's expected future cash flows, or net present value, would be $364 million.