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Coal from WA at $5.14/t

BLACKHAM'S Scaddan mine in Western Australia could produce 8 million tonnes of lignite coal for e...

Lou Caruana
Coal from WA at $5.14/t

Scaddan, which has a total coal resource of 1.4 billion tonnes, has a coal inventory of between 200 and 320Mt, according to data supplied to the company by Runge.

With an average seam thickness of 8m, Scaddan has a low average strip ratio of 3.2 bank cubic metres per tonne using dragline waste removal methods.

The company would use truck and shovel mining of the coal seam with in pit crushing and conveying, according to its mine plan.

Blackham has signed a memorandum of understanding with the Port of Esperance, which is planning a 20Mtpa expansion.

A scoping study of coal export via Esperance indicates a net present value of $770 million for the project with an internal rate of return of 23%.

The company is also investigating development of a coal to liquids facility to produce diesel.

Its combined resources equate to approximately 40 years of potential feedstock based upon a 60,000 barrel per day CTL facility.

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