PERTH (miningweekly.com) – Scoping studies into the Broadmeadow East and Isaac River opencut coking coal projects, in Queensland, have proven positive for junior Bowen Coking Coal.
The ASX-listed company on Wednesday reported that the results of first stage independent scoping studies have indicated a run-of-mine production target of 0.8-million tonnes a year to 1.1-million tonnes a year over a five to seven year period for Broadmeadow East, and 0.4-million tonnes a year to 0.6-million tonnes a year over a four to five year period for Isaac River.
The Broadmeadow East project would require a capital investment of between A$6-million and A$8-million, while Isaac River capital costs have been estimated at between A$14-million and A$17-million.
Bowen MD and CEO Gerhard Redelinghuys said the first stage production target results were a strong confidence boost.
“The results are a clear stepping stone to fulfill Bowen’s aspirations to become a low‐cost independent producer of high‐quality coking coal.
“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 may allow us to advance our larger projects. These studies will now be optimised in preparation for a final investment decision (FID).”
Bowen said on Wednesday that the company had not yet made a decision on the development of either the Broadmeadow East or Isaac River projects and mine development funding has not yet been finalised.
Before taking an FID, Bowen will obtain all the necessary regulatory approvals and agreements to allow for opencut mining, secure access to port and rail capacity, facilitate access to nearby coal processing and train loading facilities, secure mining and related services contracts, and execute customer offtake agreements while also establishing funding pathways.