About South Burnett Coal Project
The South Burnett Coal Project comprises a proposed open-cut thermal coal mine and transport corridor to export coal to Queensland east coast ports. 10 Mtpa of product coal will be generated by the Project.
The coal produced by the Project offers the opportunity for a cleaner, more efficient and ultimately more-sustainable feedstock for electrical power generation. The coal will be suitable for Supercritical Technologies and High-Efficiency Low-Emission coal fired power.
The coal mine would be located on Mining Lease (ML) 700015 (in application). The ML has been applied for over the Company’s Mineral Development Licence (MDL 385) and Exploration Permit for Coal (EPC 882).
The transport corridor is proposed to be either a multi-user railway line or coal slurry pipeline. The transport corridor will be 131 km long and connect the mine with the North Coast Line near Theebine. The route approximately follows the defunct Kingaroy Branch Line.
The Project has been declared a ‘Coordinated Project Requiring an EIS’ by the Queensland Coordinator General. This reflects the significant scale and magnitude of opportunities the Project provides to local, regional and State economies and employment.
The Terms of Reference for the EIS were issued in December 2016. The Company is now completing environmental impact assessment studies and in parallel continuing definitive design studies.
The Project offers significant job creation prospects in the South Burnett, Wide Bay Region and State of Queensland with the potential Project commencing at a critical time for the Queensland Economy.
The Project will enable support for the local South Burnett communities through a local purchase preference policy, employment and social impact commitment, and community support and capacity building to assist the development and operation of such a Project.
The Company is now engaging all levels of Government and other stakeholders to advance this project and realise the significant potential benefits at Local, State and National scales.
The Tarong Basin Thermal Coal Project (MDL 385) is located approximately 10 km south of Kingaroy in southeast Queensland’s South Burnett Region. MDL 385 is situated approximately 20 kilometres north of the Tarong Power Station, and is adjacent to the Kunioon Coal Project (MDL 201).
The Tarong Basin Thermal Coal Project is targeting the Late Triassic aged Tarong Beds, of which the Kunioon and Goodger coal seams are the economic targets. These seams have been identified as thermal quality coal suitable for use in coal-fired power stations. Preliminary mine concept studies indicate that the deposit is potentially suitable for an open cut mining operation. The thickness of overburden above the uppermost coal seam, the Kunioon Seam, ranges from approximately 70 m to 205 m.
JORC Coal Resource
Geology and reserves
The mine will target the Triassic coal seams in the northern Tarong Beds of the Tarong Basin. Five coal seams have been identified within the tenement of which four host potential economic resources: Kunioon, Swain, Goodger and Glider.
A JORC statement prepared in 2015 for the Project reports the resource area and recoverable reserves at:
• 166.2 Mt measured resources
• 712.6 Mt indicated resources and
• 33.2 Mt inferred resources.
Probable coal reserves as at 31 December 2015 within EPC 882 and MDL 385 are 290 Mt. The resources and reserves will be updated during 2017 as the Project advances.
The mine has been designed as a single or dual, open cut truck and shovel operation. The pit will be approximately 150 m deep (maximum) and 1.5km by 3.5km in size.
The strip ratio is very low at 4.5:1 (BCM:Mt ROM coal) placing the Project in the lowest quartile of mines in QLD and NSW. It is also in the lowest cost quartile.
The mine has been designed to be continually back-filled after five years of operations, with progressive rehabilitation taking place upon completed areas of in pit and ex pit waste dumping. The mine plan will be updated during 2017 as the Project continues.
Coal processing will rely on a dry separation plant. This will result in similar recoveries to a traditional wet separation processing plant but provide superior operating outcomes including:
• Up to 90-95% less water consumption
• No wet tailings or tailings storage facilities
• Less chemicals used in processing
• Lower power requirements
• Lower CAPEX
• Lower haul truck diesel consumption and CO2 emissions
• Lower noise emissions
• Smaller footprint
Pre-Feasibility Study (PFS)
The PFS has confirmed the robust economics of the project as advised in the mine concept study released to the ASX on 8th August 2014. The PFS currently validates an $11-12 Billion project revenue over 42 years, at an anticipated 5.5Mtpa of coal production rate. At a benchmark price of $50AUD (19.6GJ) this Coal Reserve is foreseen to be economically minable and saleable.
Key highlights from the PFS based on 5.5Mtpa includes –
• Up front expected Capital spend of $250+ Million in construction phase invested in the South Burnett
• Targeted project revenues of $11-12 billion for 42 years (potential upside remains in additional resources
• Environmentally sustainable with positive economic and social impacts to South Burnett Community
• A focus on potentially industry leading initiatives such as significantly lower water usage requirements, far lower dust emissions from processing and development of a superior set of parameters, with consideration on co-existence with farming communities that allow all to operate in unison
• Quality coal product for the power generation industry with high calorific values, assisting in the reduction of total coal requirements in line with the “Adoption of the Paris Agreement” intent
A review of the Project’s NPV is to be carried out in Q2 2017 based on a production rate of 8-10Mtpa over 25 years.
Mining Lease application 700015.
Mine Concept Study
A high-level Mine Concept Study carried out in July 2014 indicates the potential for an open cut dragline and/or shovel and truck mining operation with a potential life of mine of over 30 years. The production capacity is estimated to be in the order of 5 Mt per annum run-of-mine coal over an average strip ratio of less than 7:1 (1 BCM waste to 1 tonne coal) over the life of mine.