PERTH (miningweekly.com) – ASX-listed diversified developer Aquila Resources on Thursday reported that a prefeasibility study for the Belvedere hard-coking coal project, in Queensland, has been completed.

The project is 51% owned by Brazil’s Vale, with Aquila and coking coal producer AMCI holding 24,5% each.

The prefeasibility study proposes an underground longwall mine, initially producing around 3,5-million tons a year of coking coal, which would later be ramped up to seven-million tons a year when the second longwall is installed.

Subject to both owner and statutory approvals, as well as the completion of the technical studies, construction of the mine could start in 2014, with the first coal being mined in 2016. The first longwall is expected to be installed in 2017, followed by the second longwall in 2020, Aquila said.

The coal produced at the Belvedere project is intended to be exported through the proposed Wiggins Island coal terminal, connected overland by Queensland Rail’s Moura infrastructure, which runs directly past the proposed project.

The outcomes of the prefeasibility study also suggested that the Belvedere project could be developed for a capital cost of A$2,8-billion, which includes a provision for engineering, procurement, construction and management of A$245-million and a contingency of A$169-million.

The prefeasibility study also identified more than one-billion tons of indicated resource and 1,4-billion tons of inferred resource for a total of 2,4-billion ton resource estimate.

Aquila executive chairperson Toni Poli indicated that a feasibility study would now be undertaken, albeit initially with limited scope to target technical and infrastructure issues. Thereafter, there would be further evaluation of project economics and a decision would be taken on whether to proceed.

“The prefeasibility study confirms the status of the Belvedere hard coking coal project area as a major coking coal resource and provides confirmation that this resource is recoverable with underground longwall mining methods,” Poli said.

The Belvedere project has been declared a “state significant project requiring an environmental impact statement” under the Department of Infrastructure and Planning and is presently undergoing approval for mining and petroleum leases.

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