The Australian listed company, who has traditionally focused its business on coal seam gas in central Queensland through interest Galilee Energy, said it had taken options to acquire coal assets next to Rio Tinto’s Hail Creek mine.
The company said it had targeted first open-cut production within three years, subject to due diligence, feasibility studies and shareholder approval. Underground mining further down the track is also a possibility.
Included in the options are coal assets near Moura and in New Zealand.
“The coal interests we are seeking to acquire in Queensland are located in Australia’s premier coal province, close to extensive transport and other infrastructure. Coal fits well with our Galilee coal seam methane interests,” said Eastern chairman Gordon Smith.
Eastern plans to combine three exploration permits adjoining Hail Creek – at the Peak and Broughton. The 75 million tonne resource of coking, PCI and thermal coal open cut resource will be targeted.
The Peak is also believed to have potential for underground mining.
Near Moura, two permits will be combined to target coal resources.
The proposed purchases will cost A$8.5 million, comprising of $8 million for The Peak and Wonbindi, and $500,000 for Restpine which holds Broughton and Whareatea West in New Zealand.
The project will be partly funded though placement of 55 million shares to raise $2.2 million.
