In collaboration with the Queensland State Government and the local communities of Bajool, Marmor and Raglan, Xstrata Coal is conducting a detailed pre-feasibility study into the potential development of a 35 million-tonne-per-annum capacity terminal south of Rockhampton in Queensland - the proposed Balaclava Island Coal Export Terminal (BICET).

In October 2009, Xstrata Coal submitted an Initial Advice Statement (IAS) to Queensland’s Coordinator General under the State Development and Public Works Organisation Act 1971.

In compliance with the Australian Government's Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act), Xstrata Coal also submitted a referral to the Australian Government Department of Environment, Water, Heritage and the Arts (now the Department of Sustainability, Environment, Water, Population and Communities).

On 7 May 2010, Queensland's Coordinator-General declared the BICET project to be a ‘significant project’ for which an environmental impact statement (EIS) is required under section 26(1)(a) of the State Development and Public Works Organisation Act 1971 (Qld).

On 31 March 2010, the Commonwealth Minister for Environment, Heritage and the Arts determined the project to be a controlled action which requires assessment and approval under the EPBC Act before it can proceed.

On 26 February 2011, Queensland's Coordinator-General released the draft Terms of Reference for the proposed project.