First coal railed from Bluff

BOWEN Coking Coal has railed the first coal from its Bluff open cut pulverised coal injection coal mine in Queensland to the RG Tanna Coal Terminal. The coal is scheduled to be shipped to the purchaser before the end of June.
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Bowen Coking Coal has railed first coal from its Bluff mine in Queensland.

BCC CEO Gerhard Redelinghuys said this established the company as Queensland's next independent metallurgical coal producer. 

"This is the next significant achievement for Bowen," he said.

"Our first shipment from Bluff is just the start of our production ramp up. We have a portfolio of quality metallurgical coal developments coming online this year at Broadmeadow East, Burton followed by Isaac River as we work towards our production target of mining 5 million tonnes per annum of run-of-mine coal by 2024."

The shipment is under a sales contract with Formosa Plastics Group, a large diversified multinational conglomerate headquartered in Taiwan.

The sale was agreed under the 50:50 Marketing Joint Venture with Bowen and M Resources, a specialist metallurgical coal trading company.  

The coal produced from Bluff is washed and loaded on rail under an agreement with the nearby Cook Colliery before transport to the RG Tanna Coal Terminal at Gladstone for export.

The first two train loads have been delivered to the port with the remaining deliveries scheduled before the end of the month.  

Bluff produces an ultra-low volatile PCI coal, which is particularly attractive for its low ash, high energy and high coke replacement ratio. 

BCC said demand for ULVPCI was expected to remain buoyant due to the impact on PCI supply from Russia as a result of sanctions imposed following the invasion of Ukraine.

ULVPCI traded for US$348 per tonne on June 10.