Rinehart has also made an investment in Carabella Resources, which has an advanced coking coal project in the Bowen Basin and is cashed up after selling a share of her Galilee Basin projects to Indian group GVK in a $US1.26 billion deal.
GVK acquired a 79% stake in her Hancock Propecting company’s flagship Alpha and Alpha West projects, 100% of Hancock’s nearby Kevin’s Corner project and all of Hancock’s associated rail and port commitments in September.
Queensland Coal Investments, a wholly owned subsidiary of Hancock Prospecting, and Tiaro Coal have identified nine initial exploration targets to be investigated on EPC 1262 located 30km from Blair Athol mine.
QCI is earning up to 51% through a farm-in joint venture agreement with Tiaro.
A three phase exploration program involving geological mapping and field reconnaissance, ground gravity surveying and drilling will be undertaken by the joint venture.
“By increasing the detail of the gravity data available, localised coal basins, such as that found at Blair Athol, could become evident,” Tiaro said in a statement to the Australian Securities Exchange.
“Once the most favourable locations have been selected through geological and gravity methods, drilling will be undertaken to test the targets for coal. The exploration program is expected to run over nine months.”
Rio’s Clermont mine is expected to produce 12.2 million tonnes in 2013 when it reaches full capacity and has resource of 190Mt. The Blair Athol mine produced 6.8Mt in 2010.
