First production in view as Bowen Coking Coal scoping studies deliver strong results
- Written by Gareth Quinn
Bowen Coking Coal’s ambitions to become a low-cost independent producer of high quality coking coal within the next few years have received a major confidence boost after scoping studies indicated a peak annual production of 1.7 million tonnes per annum (Mtpa) from two of its Bowen Basin assets.
Results of the company’s first stage independent scoping studies have indicated a run of mine (ROM) production target of 0.8 million tonnes per annum (Mtpa) to 1.1Mtpa over a five to seven year period for Broadmeadow East, and 0.4Mtpa to 0.6Mtpa over a four to five year period for Isaac River.
Bowen Managing Director and CEO Mr Gerhard Redelinghuys, said the first stage production target results followed recent exploration results and brought a production horizon clearly into view.
“The combined projects have the potential to generate significant amounts of cashflow in the light of recent price recoveries and relatively low capital requirements, which will allow us to advance our other, larger projects,” Mr Redelinghuys said.
“These studies will now be optimised in preparation for a Final Investment Decision on the projects which are proposed to come on line at a time when market fundamentals are expected to be strong.
“Demand for higher-quality metallurgical coal like Bowen’s is increasing following environmental reforms in China’s steel industry, while growing steel production capacity in India, Vietnam, Malaysia and Indonesia is also expected to support demand for our products,” he said.
Mr Redelinghuys said that an environmental application for its Isaac River project along strike of BMA’s Daunia mine has been submitted and approvals are expected in the second half of this year. Final permitting and decision to mine is also planned for later this year for the company’s flagship Broadmeadow East Project which is located 25km north-east of Moranbah in close proximity to several major coking coals mines including Peabody’s Coppabella Mine and BMA’s Broadmeadow Mine.
Summary of key outcomes (approximate)
|
Particulars |
Broadmeadow East |
Isaac River |
|
Life of mine (LOM) |
5 – 7 years |
4 – 5years |
|
Production (ROM) |
0.8 – 1.1Mtpa |
0.4 - 0.6Mtpa |
|
Total strip ratio (Incl Auger tonnes) |
7.0:1 BCM/ROMt |
8.6:1 BCM/ROMt |
|
Total coal yield |
69% |
81% |
|
Total Coal per annum |
0.55 -0.83Mt |
0.32 - 0.49Mt |
|
FOB Cost (Excluding Royalties) |
A$100 - $110 |
A$113 - $122 |
|
Initial Capital Expenditure |
A$6 – A$8m |
A$14-A$17m |
About Bowen Coking Coal
Bowen Coking Coal Ltd is a Queensland based coking coal exploration company with advanced exploration and development assets. The Company owns the Broadmeadow East (100%), Isaac River (100%), Cooroorah (100%), Hillalong (90%) and Comet Ridge (100%) coking coal projects in the world-renowned Bowen Basin in Queensland, Australia. Bowen Coking Coal is also a joint venture partner with Stanmore Coal Limited in the Lilyvale (15% interest) and Mackenzie (5% interest) coking coal projects. The highly experienced Board and management aim to grow the value of the Company’s coking coal projects to benefit shareholders by leveraging innovation and maximising the assets and network of the team. An aggressive exploration and development program underpins the business strategy.
