The find could have significant implications for landholders in the Kunioon Valley who are fighting to save their farms from Tarong Energy’s plans to build a new open cut coal mine.

The State Government-owned energy company plans to build the new mine to replace the Meandu Mine, which it had previously stated was due to run out of coal by around 2012.

Tarong Energy bought the Meandu Mine and the Kunioon Mineral Development License from Rio Tinto in 2008.

It has recently reappraised the Meandu geology and mine plans, and says it has found there is more coal there than it originally thought.

The new-found economic reserves would be adequate to continue using the Meandu mine "well beyond" 2012, Tarong Energy said, but just how long that is has not yet been disclosed.

The re-appraisal had also shown that the cost of mining the remaining reserves at Meandu would also be less than previously estimated.

Tarong Energy has been buying farms in the Kunioon Valley just south of Kingaroy since it chose the valley in September 2007 as its preferred site to source the future coal supply needs of its large coal-fired power stations at Tarong.

Many landholders have sold but a large number have not and remain determined to fight Tarong Energy’s plans to buy their farms.

What the new find at Meandu means for those remaining landholders is now the subject of debate.

Rumours are circulating that Tarong has found enough fuel at Meandu to last for the life of its power stations, and that its Kunioon development is no longer necessary.

However, the official line from Tarong Energy is that while the Kunioon development may now be delayed, it will definitely still go ahead.

"Tarong Energy is assessing the appropriate strategy for the timing of the transition of mining operations from Meandu to Kunioon," Tarong Energy said in a statement to Queensland Country Life.

"A number of factors will be taken into consideration regarding timing of the transition, but the main focus will be on accurately determining the quantity and quality of coal contained within the mining lease at Meandu, and the cost of extracting that coal."

It said the Kunioon resources remained a valuable asset for the people of Queensland and Tarong Energy was continuing to make voluntary land acquisitions.

Tarong Energy's Tarong and Tarong North Power Stations and Wivenhoe Dam Hydro-electric Power Station have the combined capacity to deliver up to 25 per cent of Queensland’s power needs.