Name of the Project
Broadmeadow East (BME) and Isaac River coal projects.

Location
The Broadmeadow East project is situated about 185 km south-west of Mackay, Queensland, and 25 km north-east of the major regional township of Moranbah, in the central Bowen basin of Australia.

The Isaac River project, in the central Bowen basin, is about 30 km to the east of Moranbah, in Central Queensland.

Project Owner/s
Bowen Coking Coal (BCB).

Project Description
The BME and Isaac River coal projects form part of Bowen Coking Coal’s greater Burton Complex.

The BME project has resources of 33-million tonnes, of which 10.6-million tonnes are in the measured and indicated categories. Isaac River has resources of 8.7-million tonnes, of which 8.3-million tonnes are in the measured and indicated categories.

The coal at BME is flexible to allow for the production of a primary coking coal product of either high quality (7.5% ash, up to CSN 7.5) or high yield (9.2% ash, CSN 4.5). In both these cases, the secondary energy coal created from the primary coking coal discard has a calorific value of more than 6 500 kcal/kg, which is also a sought-after product for the export coal markets.

The results of the first-stage independent scoping studies on the BME and Isaac River coal projects have shown a run-of-mine (RoM) production target of 800 000 t/y to 1.1-million tonnes a year over a five- to seven-year life-of-mine (LoM) for BME, and 400 000 t/y to 600 000 t/y over a four- to five-year LoM for Isaac River.  

Potential Job Creation
The Isaac River mine project is expected to create 200 jobs at steady state.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The BME project is expected to cost from A$6-million to A$8-million, and the Isaac River project from A$14-million to A$17-million.

Planned Start/End Date
Not stated.

Latest Developments
BCB has completed the previously announced sale of a 10% interest in the Broadmeadow East mine for A$13-million in cash and royalties.

MPC Lenton, a subsidiary of Taiwan-headquartered Formosa Plastics Group, has acquired the stake to facilitate the mine’s being incorporated into the Lenton joint venture (JV).

BCB and Formosa are 90:10 JV partners in the Lenton JV, which owns the neighbouring Burton mine and Lenton project.

Consistent with BCB’s senior debt facility documentation, Bowen intends to use $7-million of the sale proceeds to repay a portion of the Taurus facility. When BCB does so, it will reduce the principal debt balance of the Taurus facility from $51-million to $44-million, and the final debt repayment will be reduced accordingly.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Bowen Coking Coal, tel +61 7 3191 8413 or email info@bowencokingcoal.com.