The Donkin Coal Alliance – 25% owned by Erdene and 75% by Xstrata – is completing a feasibility study of a continuous miner evaluation and development program as an interim step to development of a longwall.
The planned longwall will produce 4 million tonnes per annum for domestic and export markets. The joint venture had previously flagged start-up, on being given the go-ahead, in 2010.
Erdene said yesterday some tenders had been provisionally awarded and requests for pricing issued for the long lead-time items and major contracts associated with the project.
The company indicated the future of the project hinged on securing an offtake deal.
“The feasibility study for the program will be finalised upon conclusion of sales agreements,” Erdene said.
A preliminary assessment study, completed in 2007 by Norwest Corporation, showed the mine could yield up to 109Mt run-of-mine coal over a mine life of 30 years.
