BHP Billiton-owned Queensland Coal Investments has issued an exploration notice for a 95-square kilometre parcel of land which straddles the two Outback shires.

The land, to the north of Quamby, is in the heart of the resource-rich North West Minerals Province but up until this point, exploration for coal in the region had been non-existent.

BHP Billiton deals mainly in coking coal within Australia.

Discoveries of coal have become increasingly common in the North West in the past year with coal seam gas projects earmarked for the Flinders and Richmond shires and exploration underway in the McKinlay Shire.

But this is the farthest west exploration has been planned.

Member for Mount Isa Betty Kiernan said she was unaware of other coal exploration this far west.

"I've never heard of anyone finding coal in the Mount Isa minerals province before," she said.

"But coal is one of the most sought after resources in the world so it doesn't surprise me to hear they're looking."

A BHP Billiton spokeswoman said it was against company policy to comment on exploration projects.