The new underground operation has an estimated resource base of about 12.3 million tonnes.
The company said it has been assembling the necessary equipment, support facilities and infrastructure needed for the new mining area.
Production of coal is expected to start during the third quarter of fiscal 2012, which begins 1 October 2011.
Grande Cache president and CEO Robert Stan said the approval of the No. 12 South B2 underground operation allows the company to maintain production levels from underground mining as it transitions its workforce and equipment from its current No. 7 underground operation.
