China Daily reported that companies China Coal Geology Engineering Corporation and Wanbei Coal-Electricity Group inked an agreement for five years of exploration in a project within an area of Queensland which has forecast reserves of “10 billion tons”.
A wholly owned subsidiary of CCGEC, Australia China Corporation of Coal Geology Engineering had its application for tenement EPC1723 processed on Tuesday according to data available in Intierra Live.
The application was first made back in April 2009, but the permit has not yet been granted by the Queensland government.
The tenement area is estimated to be 3158 hectares and is alongside Macarthur’s Capricorn project in EPC769 which remains in a “grassroots” stage and is considered prospective for thermal and pulverised coal injection coal.
EPC1723 is also directly north of Stanmore Coal’s wholly owned New Cambria project in EPC113 which is targeting low-volatile PCI coal along a structural trend from Yancoal Australia’s Yarrabee mine.
The New Cambria project sits directly east of the old Excel Colliery which, back in the 1950s, extracted high-energy coal rated at more than 7200 kilocalories per kilogram.
Stanmore picked up this tenement along with 10 others as part of its acquisition of Comet Coal & Coke in September 2009.