MetroCoal, known for its goal to introduce longwall mining to the state’s Surat thermal coal Basin, said it first applied for the Galilee block in November 2008.
The new tenement, EPC 1640, adjoins tenure held by other well-known and established coal operators in the Galilee Basin, the explorer said.
“Rail infrastructure goes through the tenement and links directly with the port at Townsville,” MetroCoal said.
“This tenement, which is prospective for open cut mining, provides MetroCoal with thermal coal exploration opportunities outside the Surat Basin and the company looks forward to expanding into this area.”
The Galilee crew
While it is facing delays due to environmentally-based legal challenges, GVK Hancock appears to be the front runner in the undeveloped Galilee Basin and has good relationships with the Queensland government and rail operator Aurizon.
Its Galilee projects include the $4.2 billion Kevin’s Corner project, which received federal environmental approval in November, plus its $6 billion Alpha and expansion option Alpha West projects.
When combined, GVK’s three projects could create one of the largest coal mining operations in the world, holding total resources of 8 billion tonnes and peak capacity of about 80 million tonnes per annum.
The projects are expected to provide about 7000 jobs during construction and about 20,000 once the mix of open cut and longwall operations start up.
The company was formed after Indian conglomerate GVK acquired a 100% stake in the Kevin’s Corner project in Queensland from iron ore figure Gina Rinehart’s Hancock Prospecting and a 79% stake in the Alpha Coal and Alpha West Coal projects in late 2011.
Federal MP and Galilee Basin rival Clive Palmer has previously claimed that GVK Hancock’s railway plans received favourable treatment from the Queensland government.
Palmer’s Waratah Coal leads the vast $6.4 billion China First coal project in the region with considerable Chinese backing.
Other big coal projects in the region include AMCI and Bandanna Energy’s South Galilee project, Vale’s Degulla project – which was reportedly on the market in mid-2013 – and Indian conglomerate Adani’s Carmichael project.
