The resource consists of 35Mt of inferred resources and 45Mt of indicated resources, to be upgraded to measured resource status by the end of March 2005.
The company said conceptual economics for the project are positive with a feasibility study launched to confirm viability. An environmental impact study is in progress to support the mining lease application.
The West Rolleston Project has been assigned first priority for development due to infrastructure availability at the Gladstone Port.
Macarthur Coal also confirmed the presence of hard coking coal at the Moorvale West underground deposit and at the Olive Downs open cut deposit.
“Approximately A$11.6 million has been invested since 1998 in the exploration program under Macarthur Coal’s management. The Company has eight potential projects, seven identified through its exploration program,” managing director Ken Talbot said.
"We look forward to developing our grass roots assets to coincide with infrastructure expansions.”
Talbot predicted ongoing demand for metallurgical and PCI coal, adding Macarthur Coal was well positioned to benefit from higher prices and increased coal production as a result of the growth achieved in the 2003/04 year.
The company currently holds 73.3% of the Coppabella and Moorvale mines. Its operations produce approximately 38% of the seaborne global demand for low volatile PCI coal.
