88娱乐城
Located immediately downdip of Anglo鈥檚 surface coal Dawson mine, the project鈥檚 prefeasibility study confirmed the viability of a 3.5 million tonne per annum coking coal operation, which will increase to 7Mtpa with a second longwall in 2020.
Mine construction is slated to start in 2014, while the coal is destined for export through the upcoming Wiggins Island Coal Terminal.
Operating costs are calculated to reach $US71 a tonne free-on-board, excluding royalties.
The mine life would exceed 30 years just on the basis of the domains considered in the study, with other resources further extending the operation.
With the new capital expenditure estimate up by more than $A800 million from earlier expectations, Vale is looking at $1.02 billion for underground mine costs, $754 million for surface infrastructure, $630 million for gas drainage, and $245 million for engineering, procurement, construction and management, along with a contingency provision of $169 million.
Vale seeks to provide shaft access to the two target seams for longwall mining and Aquila says review of the surface infrastructure costs may result in some savings.
Considerable inseam gas drainage will be undertaken for the initial workings and the longwall blocks in the first two domains of the project.
鈥淭he gas drainage is fast-tracked to commence operations at the earliest possible opportunity requiring a hole density/spacing that is greater than in use at any other mine in Australia at present,鈥� Aquila said.
The company noted there was no gas field work completed for the study, which used historical data in this regard, and said further review and possible alternative strategies could save money in this area.
Aquila also said the EPCM estimates were conservative.
The prefeasibility study resulted in a downgrade of the project鈥檚 resources to 1 billion tonnes of indicated and 1.47Bt of inferred resources.
Lower than the 3.87Bt of combined resources identified back in 2008, the new resource statement was based on product with an ash content of 7.5-8.5%, moisture of 10%, sulfur of 0.45% and a CSN index of 7-8.5.
Next steps
Further work will initially target technical and infrastructure issues.
Once those are ironed out, Aquila said there would be further evaluation of the project economics and then a decision to proceed with a full feasibility study.
The project partners are awaiting approval for mining and petroleum leases and Aquila said further studies would review the possibilities of a complementary gas business with the project.
The Perth-based company also noted there was a range of possible mining areas in the project for the same and other seams at shallower and deeper depths.
Aquila hopes to gain a large sum for selling its remaining 24.5% stake of the project to Vale, but said it had not received any indication Vale would exercise its option to acquire the stake.
The first option period goes for six months and started on December 4.
Private equity group AMCI also owns a 24.5% stake of the project.
Aquila shares are down 2.4% to $10.72 this morning.
