FACTBOX-Australia coal projects compete with farms

SYDNEY, March 1 (Reuters) - Proposed new coal mines in Australia pose a threat to some of the country's most productive agricultural land, farmers say.

They argue the planned giant mines could damage water aquifers that sustain the rich black soil country in the Gunnedah Basin, in the north-west of the eastern state of New South Wales, some 330 km distant from Sydney.

For accompanying analysis, click on [ID:nSGE61O00R] Here are some facts about the projects and the region.

Projects:

Caroona - 100 percent owned by the world's largest diversified miner, BHP Billiton (BHP.AX) (BLT.L):

* BHP was awarded an exploration licence in 2006 to look for coal over 344 sq kms, paying some A$100million ($89 million) for the licence area, which could contain more than 500 million tonnes of coal.

* The group plans to develop an underground mine to extract coal via a longwall mining system.

* The group hopes mining will run for 30-50 years.

* Project cost is currently estimated at around $2 billion.

* BHP supports an independent water catchment study before undertaking development and will contribute to the study's cost.

* The group plans to ship its coal via the port of Newcastle, about 160 kilometres north of Newcastle.

Watermark - 100 percent owned by China's state-owned Shinhua Corp

* Shinhua was awarded an exploration licence to look for coal over a 195 sq km area, agreeing to pay around A$600 million for the licence area and to develop infrastructure needed to transport coal to the port of Newcastle.

* The company plans to develop an open cut mine should its exploration program be successful.

* Shenhua says it will only mine the ridge country but will need to do some investigative work on the more productive black soil to get a thorough understanding of the underground water system. * Shenhua has given landholders within the targeted mining area within the exploration lease the choice to sell their property up-front.

* There is estimated to be around 500 million tonnes of coal within the Watermark licence area with a potential mine life of around 50 years.

* Should a viable mine be identified and subject to the issue of all necessary approvals, Shenhua anticipates construction of the mine to start in 2012, with mine production to start in 2013.

* Oil and gas companies, such as Australia's second largest listed oil and gas group Santos Ltd (STO.AX), are also hoping to develop coal seam gas projects within the region but have met strong opposition from the community as well as green groups, over concerns that coal seam gas extraction will sully the region's water quality.

Agriculture in the Gunnedah Basin * The Gunnedah Basin contains the Liverpool Plains, comprising fertile black soil used to grow both winter crops such as wheat as well as summer crops including cotton and sorghum.

* Beneath the surface run large water aquifers that farmers tap, making the area less prone to drought.

* The basin also includes less fertile ridge country, used for cattle and sheep farming.

* The region's wheat output accounts for about 1.3 million tonnes of around 22 million tonnes of grain produced in a good year, with the areas directly affected by the mining proposals producing about 275,000 tonnes.

* While not a large portion of Australia's overall crop, the region's high-protein grain is highly sought by flour millers and pasta makers.

* The region also also accounts for about half of Australia's cotton output and is also a big producer of sorghum, barley, oats, sunflowers, soybeans and corn. ($1=A$1.11) (Editing by Clarence Fernandez)