Nissho Iwai Australia is the other major shareholder with a 30% claim.
Minerva is a greenfields coal deposit located 40 kilometres south of Emerald. The project is likely for early development as a 2.5 million tonne per annum mine supplying PCI and thermal coal for export. Felix said the mine should ramp up by mid-2005 with initial production of 500,000 tonnes per annum.
Mine life is estimated at 13 years with a potential to expand production and extend life via an underground operation.
Total development costs are about $60 million, equating to a capital intensity of $25 per annual tonne of capacity.
Felix will pay $1.75 million on settlement with a further $1.75 million after 12 months. There is provision for royalty payments to New Hope, triggered when production commences.
“Minerva would be a fine complement to the existing Yarrabee operation and significantly enhance the financial and operating profile of this company,” said Felix MD Jon Parker.
