A new report released by global consulting firm Ernst and Young (EY) has suggested that proceeding with the New Acland Stage 3 project could lead to the creation of additional economic activity worth A$7bn ($5.37bn) in Australia.

Based on the findings of the financial report, New Acland Coal (NAC) is expected to make payments in excess of A$8.1bn ($6.21bn) to stakeholders over a mine-life of 12 years.

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In case the project is not approved and the mine is closed in 2020, economic activity will be restricted to only $1.3bn.

New Hope Group managing director Shane Stephan said: “We always said the expansion at NAC would bring great benefit to the local and broader community and this independently verified report shows that in stark reality.

“It also shows just how much money will go missing from the economy if the Queensland State government rejects stage three.”

“It also shows just how much money will go missing from the economy if the Queensland State government rejects stage three.

“If the expansion of NAC doesn’t go ahead 535 existing full time jobs will be lost and a further 405 jobs in construction and ongoing operations will not be created.”

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The report also states that the project’s suppliers will miss out on potential revenue of more than A$2.5bn ($1.91bn) over the next ten years.

Additionally, if the project does not go ahead, it is expected to rob the local government of A$112m ($85.97m) revenue.

If the approval is obtained, the anticipated payments to stakeholders are likely to be around A$800m ($614.08m) in 2020.

Once the construction is completed, the mine is expected to contribute about A$575m ($441.37m) per year for the decade to 2031.