A cross-border coal mining project is worth more than £240 million, according to new research.

This latest study shows a dramatic rise in the estimated value of any mine in the Lochinvar coalfield – between Longtown and Canonbie – from previous investigations, as well as a significantly reduced construction cost.

The earliest date any mine could open though has been pushed back by four years.

New Age Exploration – an Australian company based in Melbourne – has a licence to explore the Lochinvar field for coking coal, which is used to produce steel.

It carried out a scoping study, which examined the feasibility of any mine, in 2014. The following year the project was put on hold following a dramatic fall in the price of coking coal as a commodity.

Last year though it resumed its activities after a recovery in the price.

It has produced a new scoping study, which has been presented to the Australian Securities Exchange.

This gives a net present value of the mine of $410m (about £246m), an increase from the $263m (about £209m) figure which was given three years ago.

In addition, the estimated construction capital cost of the mine is given as $229m (£182m), while in 2014 this was given as $284m (slightly more than £225m).

With these figures it would take four years for the company to repay the cost of the mine’s construction.

It is estimated that the mine would produce 1.4 mega tonnes (Mt) over 26 years and has estimated a benchmark price of $160 (£127) per tonne of coal.

A spokesman said: “Lochinvar delivers excellent and robust returns on investment in a low risk country with lowest quartile operating costs and a low construction cost”

The earliest a mine is now likely to open though is 2022, four years later than was predicted when the last study was produced.

This report also highlighted the site’s proximity to the railway network and to ports which can transport the coal to continental Europe and emphasised the quality of the material available.

Electricity would be provided by the Gretna substation.

“European metallurgical coal imports (are) forecast to grow from around 52Mt (2017) to 61Mt (2035),” the spokesman said.

“Lochinvar coal is comparable to US high volatile a hard coking coal – highly sought after in Europe.”