Felix Resources is preparing to start open cut mining at the prospective 13 million tonne per annum Moolarben operation in September, with the first shipment planned for March 2010.
The operation is expected to bolster the company’s standing in the coal industry and has even been tipped by brokers to send the share price up to $A15.
Felix currently has government approval for 10Mtpa of product coal with up to 4Mtpa permitted from its upcoming longwall operation, while Moolarben will produce most of its coal from three open cuts.
But the company has also made a stage two application to the New South Wales Department of Planning to gain approval for 13Mtpa of product coal from 17Mtpa run-of-mine production.
As part of the application, Felix is seeking to gain approval for two underground mines below the sandstone ridges of the project to produce up to 4Mtpa of ROM coal each.
The Department of Planning is currently preparing a response to the application, with the next approval hurdles being the assessment and determination stages.
Meanwhile, Xstrata Coal has a hefty development pipeline for the Hunter Valley with two projects to come to fruition in the next two years.
The most anticipated development is the $375 million Blakefield South project, which will replace production from the Beltana longwall in the first half of 2010.
Having ordered a new Joy longwall system, Xstrata aims to extract about 80Mt of low-ash thermal and semi-soft coal at about 8Mtpa for Asian buyers.
The new LASC-automated equipment is expected to build on the automated production levels already achieved by the industry-leading Beltana operation.
In the Upper Hunter Valley, Xstrata is advancing the development of its $1.1 billion Mangoola (formerly Anvill Hill) open cut mine, which is expected to produce 10.5Mtpa of thermal coal from 2011.
Less-advanced projects
Coal and Allied’s Hunter Valley Operations are also planned for expansion with a prefeasibility study underway.
Located 24km northwest of Singleton, the decades-old, multi-pit, open cut operation is slated to boost run-of-mine production by 14Mt of semi-soft coking coal and thermal coal in 2011.
The 76% Rio Tinto-owned company also has its Mount Pleasant open cut project, which is adjacent to its Bengalla open cut mine near Muswellbrook.
Two pits are under consideration for the proposed $1.3 billion, 8.5Mtpa thermal coal mine, which is expected to start up in 2013 and have a mine life of 25 years.
However, the Mount Pleasant project has been part of the company’s development portfolio since 1992 and in March, Coal & Allied chairman Chris Renwick hinted it might not go ahead.
While acknowledging an engineering feasibility study last year deemed the project “economically attractive”, he said greater certainty of supply chain infrastructure was required before there would be a commitment to development.
Anglo Coal Australia has received government approval for its Drayton expansion project to extend the life of the mine to 2016 and lift production of the open cut operation by 2.5Mtpa.
Close to Drayton is a new potential project, Saddlers Creek, which has been on the drawing board as an open cut and underground operation to produce 2Mtpa of thermal coal.
But Anglo has made cutbacks this year, including at Drayton, and the company is not commenting on its growth projects at this point in time.
