Bowen Coking Coal’s ambitions to become a low-cost independent producer of high-quality coking coal within the next few years have received a major confidence boost after scoping studies indicated a peak annual production of 1.7 million tonnes per annum (Mtpa) from two of its Bowen Basin assets.
Results of the company’s first stage independent scoping studies have indicated a run of mine (ROM) production target of 0.8 Mtpa to 1.1 Mtpa over a five to seven-year period for Broadmeadow East, and 0.4 Mtpa to 0.6 Mtpa over a four to five year period for Isaac River.
Bowen Managing Director and CEO, Gerhard Redelinghuys, said the first stage production target results follow recent exploration results and bring a production horizon clearly into view.
“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 will allow us to advance our other, larger projects,” Mr Redelinghuys said.
“These studies will now be optimised in preparation for a Final Investment Decision on the projects which are proposed to come online at a time when market fundamentals are expected to be strong.”
“Demand for higher-quality metallurgical coal like Bowen’s is increasing following environmental reforms in China’s steel industry, while growing steel production capacity in India, Vietnam, Malaysia and Indonesia is also expected to support demand for our products,” he said.
According to Mr Redelinghuys, the company has submitted an environmental application for its Isaac River project along strike of BMA’s Daunia mine and approvals are expected in the second half of this year.
Final permitting and decision to mine is also planned for later this year for the company’s flagship Broadmeadow East Project which is located 25 kilometres north-east of Moranbah in close proximity to several major coking coals mines including Peabody’s Coppabella Mine and BMA’s Broadmeadow Mine.