PERTH (miningweekly.com) – ASX-listed Queensland Pacific Metals (QPM) has inked a memorandum of understanding (MoU) with coal miner Fitzroy Coal Management to accelerate gas drainage at the Carborough Downs coal mine, in the Northern Bowen basin.
Fitzroy is the operator of the Carborough Downs underground mine, which is located within one of the Moranbah project tenements being acquired by QPM Energy. The company is looking to mine the Domain 3 area of Carborough Downs, but must first extensively drain the gas in the coal seam in order to meet safety and environmental requirements.
The gas reserves in the Domain 3 area have been included in the Moranbah project’s certified reserves.
While the gas would typically be flared, resulting in Scope 1 carbon emissions reportabale by the mine operator, Fitzroy has designed a surface to in seam (SIS) well programme that would be implemented over a four-year period. Under a base case consideration, the programme is forecast to recover 6.9 PJ of gas over a seven-year period, with an upside case recovery of 8.9 PJ.
Using the existing Moranbah project gathering and processing infrastructure, QPM will deliver the gas to customers and the Townsville power station. QPM will have all rights to this gas, while costs of the SIS well programme will be shared equally.
It is estimated that the SIS well programme will cost A$35-million.