Start-up capital requirements for a single 3.5Mtpa ROM longwall operation are estimated at $869 million, according to Xenith Consulting.
Under a single longwall, total mine life across the deposit is expected to be 64 years. Operating costs have been estimated at $71/t free on rail and $91/t free on board, prior to royalties.
The addition of a second longwall unit is estimated to add $529 million of capital expenditure and increase production to 7Mtpa ROM.
Xenith has conducted cash flow modelling on a conceptual plan in the northern part of the project area which supports the shallowest mine access point and mining depth of cover.
“Under this scenario, the project has demonstrated a strongly positive net present value on a single longwall basis and the opportunity to significantly enhance project economics through the introduction of a second longwall,” Stanmore said.
The Belview Project includes EPC1114 and EPC 1186 and lies to the east of Blackwater, on the eastern side of Queensland’s Bowen Basin.
“The acquisition of EPC 1186 has resulted in significant improvement to underground mining potential of the Belview Project by providing a larger, shallower resource base which has reduced both operating costs and capital intensity,” the company said.
“Relocation of the underground access point to capitalise on shallower coal in the north of EPC 1186 means it is now located immediately adjacent to existing rail infrastructure on the Blackwater line.”
Managing director Nick Jorss said: “Belview is a promising coking coal project which demonstrates strong project economics on a single longwall basis and significantly greater NPV on a dual longwall basis.
“The Belview study demonstrates a long life high-quality coking coal project in an environment where the identification and development of new-generation, high-quality coking coal projects remains challenging.
“The project is well located on existing rail infrastructure within the Bowen Basin. A further drilling program will commence shortly to define additional JORC resources to underpin a prefeasibility study.”
