Home' Australian Resources and Investment : March 2010 Contents 82 • MARCH 2010 • AUSTRALIAN RESOURCES & INVESTMENT
3 Good for jobs – generating approximately 2500 jobs at peak
construction, and 1500 at full production over the 30 plus years life
of the mine, together with increased employment opportunities for
3 Good for the town of Alpha and surrounding regions in rural
Queensland – establishing support service industries.
3 Most extensively delineated deposit in the Galilee Basin
3 Superior Hargrave Grindability Index (HGI) compared to Surat Basin
3 Calorific Value (CV) competitive with Bowen and Surat Basins
3 Low sulfur content
3 Ideal Asia-Pacific and Indian market proximity
3 Strategic partnership approach
WASHED COAL SPECIFICATIONS
Gross Calorific Value (kcalkg)
INDICATIVE PROJECT TIMING
Order of Magnitude
Bankable Feasibility Study
2009 – 2010
Environmental and Government Approvals 2010
2.6 billion tonnes of Measured, Indicated and Inferred JORC compliant
resources. Target coal resource for 2010 (JORC Report currently being
finalised) is 3.6 billion tonnes.
30 Mtpa open-cut thermal coal mine with associated infrastructure and
utilities, making it one of the largest single coal mine sites in the world
Construction and operation of a rail link from the mine to the preferred
port location (Abbot Point) allowing multi-user access
Construction and operation of a port and materials handling facility
with the capacity to handle more than 60 Mtpa.
The Kevin’s Corner Project is a recognised thermal coal deposit within
the Galilee Basin, Queensland, Australia. This deposit contains very
large resources of thermal coal in a premium location of the Basin.
Hancock Galilee Pty Ltd (HGPL), a subsidiary of Hancock Prospecting
Pty Ltd, has a long-standing interest in the development of the Galilee
Basin, with the parent company having held coal exploration permits
and investigated the Alpha region since the 1970s. Kevin’s Corner Coal
Project is adjacent to Hancock’s Alpha Coal Project. It is important to
note, the multi-user rail and port facilities proposed for the HPPL Alpha
Coal Project, which the Kevin’s Corner Project will utilise, will be
designed to transport, load and ship capacity greater than the
combined production level of both the Kevin’s Corner and Alpha Coal
Projects. The remaining capacity will cater for future developments in
Like Alpha Coal, the Kevin’s Corner Coal Project deposit also lies
within the late Permian Colinlea and Bandanna Formations. The Galilee
Basin is a world class location consisting of four main thermal coal
seams suitable for the global export market. Within the deposit there is
additional potential for liquefaction and gasification. The coal seams
dip gently from east to west varying in thickness from 5 metres to 8
metres, enabling high production open-cut mining and underground
Exploration to date has concentrated on the coal suitable for
export, with the potential for resources to be substantially upgraded
with further drilling to the west. To date more than 1.45 billion tonnes
of thermal coal has been defined as indicated and inferred under the
joint ore resources committee classification levels. A drilling
programme was completed during 2009 that will see a significant
upgrade in resources to approximately 2.4 billion tonnes and a
significant increase to indicated and measured resources (JORC Report
currently being finalised). The Alpha Coal and Kevin’s Corner combined
resource of 6.1 billion tonnes of JORC compliant thermal coal is
anticipated to increase to in excess of 7 billion tonnes following further
drilling in 2010.
The Kevin’s Corner Coal Project will be a 30 Mtpa open-cut and
underground longwall coal mine. The operation has an expected mine
life of 30 plus years.
Our studies and direct market feedback indicate that a second 30
Mtpa Project for thermal coal from the Galilee Basin is required to
meet the forecast demand for energy out beyond 2020. Galilee coal is
suitable for burning in the majority of Asian and Indian power stations.
Our planning is for commencement of construction in 2011 and first
production in late 2013.
The Kevin’s Corner Coal Project is anticipated to employ thousands
of people throughout its productive (30 year plus) life. The construction
workforce could peak at about 2500 people.
The completed Pre-Feasibility Studies for Alpha Coal and Kevin’s Corner
consider a new, dedicated multi-user rail system, as well as existing rail
Abbot Point is the preferred port location and may include:
3 Coal handling facility and stockyard site of approximately 300ha.
3 Two rail loops (5km in length) located on site with dump stations
to facilitate the unloading of coal.
3 Sufficent stockyard capacity to handle an initial 30 Mtpa with
adequate land for potential multi-user stockyard capacity
expansions up to 120 Mtpa plus.
3 Berthing for a full range of vessels from Handymax to Cape Class
(i.e. 250,000 DWT).
3 Shiploader on wharf with provision for wharf and shiploader
expansion which will allow for additional multi-user berthing
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