Adjacent to Hancock’s giant Alpha thermal coal project to the north in Queensland’s Galilee Basin, the proposed 30 million tonnes per annum Kevin’s Corner hosts 4.27 billion tonnes of resources, including 229Mt in the measured category.
Targeting three longwall operations and one open cut, Hancock stepped up marketing efforts in December.
India’s GVK Power & Infrastructure made a bid just short of $US2 billion for the project, the Economic Times newspaper reported, quoting various anonymous sources.
A report in The Australian pointed to six bidders for the project, with Chinese and Japanese power companies also in the running.
GVK has power projects underway to supply 4400 megawatts of electricity and recently made a failed bid to acquire Western Australian thermal coal producer Griffin Coal.
Hancock detailed its development goals for both the Kevin’s Corner and Alpha projects in an investment brochure released before Christmas.
With construction slated for 2012, Kevin’s Corner is aimed to produce 4.4Mt of thermal coal in 2015.
Longwall mining of the D seam is expected to lift production to 13Mt in 2016, 16.1Mt in 2017, 22Mt in 2018, 36.5Mt in 2019 and 28.3Mt in 2020.
“The underground mines will be developed from portals independent of the open cut operations, commencing immediately to the west of the open cut,” Hancock said.
“The D seam at this point is approximately 90 metres below the surface for the Northern longwall, a level which can comfortably be accessed through the excavation of drifts. The Central and Southern longwall mines access D seam at 120 metres and 150 metres respectively.”
While the project remains in the prefeasibility stage, Hancock is encouraged by the geology.
“Coal seam modelling indicates the underground coal panels could be some of the most productive in the world, with long and wide mining panels possible across the flatly dipping deposit. Working sections for the longwalls range from 3 to 5 metres in thickness.”
As part of its 2011 goals for the project, Hancock aims to boost measured resources up to 690Mt, plus complete a bankable feasibility study along with an environmental impact statement.
Hancock won preferred developer status for the Abbot Point Terminal expansion last year, which is expected to provide 60Mtpa of capacity to accommodate both its large Galilee projects.
The company plans to build 495 kilometres of rail to connect its two proposed mining complexes to the terminal, under a multi-user strategy which could open up the unexploited coal basin.
Meanwhile, the 30Mtpa Alpha open cut project is expected to use six draglines when it hits peak production in a 30-year initial mine life.
First coal of 10Mtpa run-of-mine is expected in 2014, increasing by 10Mtpa each year until peaking at 40Mtpa in 2017.
The project hosts 3.62Bt of resources, including 821Mt in the measured category.
