In February last year Northern Energy announced an inferred resource of 130 million tonnes of low-sulfur thermal coal at Elimatta and an additional exploration target of 70–100Mt was also identified.

The company’s expectations have now been exceeded, with the initial resources of 130Mt increasing to an indicated 222Mt.

“This increase in the size of the resource at Elimatta confirms our belief that the area has the potential to support a substantial mine development, once transport and other support infrastructure is available to the northern Surat region,” managing director Keith Barker said.

The Surat Rail Joint Venture formed in late 2006 is expected to establish rail access between Wandoan and Gladstone by mid-2011, which is when the company expects to progress the Elimatta project.

“Elimatta coals possess attractive properties for the export market, which when coupled with the potential for opencut development and commitment to build the rail link to the region highlights the potential for Elimatta to become a very substantial and valuable mine development for Northern Energy,” Barker said.

Elimatta coal is low-sulfur, high-volatile coal similar to other Surat Basin coals currently being exported to the Asian power utility market.

“The quality of the Elimatta coal with high volatiles and low impurities should be attractive to the global power utility market. It would be a very suitable coal for use in the latest combustion technologies, offering higher efficiencies and fewer emissions per unit of electricity,” Barker said.