Powerfuel and KRU have obtained government consent for the development of a 430 MW facility for a coal-fuelled integrated gasification combined cycle power plant at the site. The power plant project is at the feasibility study stage and, depending upon the design capacity of the plant, total costs are estimated at up to £800 million ($1.4 billion).

As part of the deal, KRU will take a 51% controlling stake in Powerfuel and inject fresh capital to refurbish the colliery with the aim of recommencing coal mining in 2007.